Correlation Between GM and YNDX Old
Can any of the company-specific risk be diversified away by investing in both GM and YNDX Old at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GM and YNDX Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and YNDX Old, you can compare the effects of market volatilities on GM and YNDX Old 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 YNDX Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and YNDX Old.
Diversification Opportunities for GM and YNDX Old
Pay attention - limited upside
The 3 months correlation between GM and YNDX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and YNDX Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YNDX Old 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 YNDX Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YNDX Old has no effect on the direction of GM i.e., GM and YNDX Old go up and down completely randomly.
Pair Corralation between GM and YNDX Old
If you would invest 5,260 in General Motors on October 24, 2024 and sell it today you would earn a total of 129.00 from holding General Motors or generate 2.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.69% |
| Values | Daily Returns |
General Motors vs. YNDX Old
Performance |
| Timeline |
| General Motors |
| YNDX Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and YNDX Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and YNDX Old
The main advantage of trading using opposite GM and YNDX Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, YNDX Old 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 YNDX Old will offset losses from the drop in YNDX Old's long position.The idea behind General Motors and YNDX Old 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.| YNDX Old vs. Onfolio Holdings | YNDX Old vs. Vivid Seats | YNDX Old vs. EverQuote Class A | YNDX Old vs. Asset Entities Class |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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