Correlation Between GM and BIST Electricity
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By analyzing existing cross correlation between General Motors and BIST Electricity, you can compare the effects of market volatilities on GM and BIST Electricity and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GM with a short position of BIST Electricity. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and BIST Electricity.
Diversification Opportunities for GM and BIST Electricity
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GM and BIST is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and BIST Electricity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIST Electricity and GM is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on General Motors are associated (or correlated) with BIST Electricity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIST Electricity has no effect on the direction of GM i.e., GM and BIST Electricity go up and down completely randomly.
Pair Corralation between GM and BIST Electricity
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.99 times more return on investment than BIST Electricity. However, GM is 1.99 times more volatile than BIST Electricity. It trades about 0.12 of its potential returns per unit of risk. BIST Electricity is currently generating about 0.11 per unit of risk. If you would invest 5,197 in General Motors on August 31, 2024 and sell it today you would earn a total of 353.00 from holding General Motors or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. BIST Electricity
Performance |
| Timeline |
GM and BIST Electricity Volatility Contrast
Predicted Return Density |
| Returns |
General Motors
Pair trading matchups for GM
BIST Electricity
Pair trading matchups for BIST Electricity
Pair Trading with GM and BIST Electricity
The main advantage of trading using opposite GM and BIST Electricity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, BIST Electricity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BIST Electricity will offset losses from the drop in BIST Electricity's long position.The idea behind General Motors and BIST Electricity pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| BIST Electricity vs. Datagate Bilgisayar Malzemeleri | BIST Electricity vs. Qnb Finansbank AS | BIST Electricity vs. Akbank TAS | BIST Electricity vs. Bms Birlesik Metal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the CEOs Directory module to screen CEOs from public companies around the world.
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