Correlation Between GENERAL and Ambev SA
Specify exactly 2 symbols:
By analyzing existing cross correlation between GENERAL MTRS FINL and Ambev SA ADR, you can compare the effects of market volatilities on GENERAL and Ambev SA 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 GENERAL with a short position of Ambev SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GENERAL and Ambev SA.
Diversification Opportunities for GENERAL and Ambev SA
Weak diversification
The 3 months correlation between GENERAL and Ambev is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding GENERAL MTRS FINL and Ambev SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ambev SA ADR and GENERAL 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 MTRS FINL are associated (or correlated) with Ambev SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ambev SA ADR has no effect on the direction of GENERAL i.e., GENERAL and Ambev SA go up and down completely randomly.
Pair Corralation between GENERAL and Ambev SA
Assuming the 90 days trading horizon GENERAL MTRS FINL is expected to under-perform the Ambev SA. But the bond apears to be less risky and, when comparing its historical volatility, GENERAL MTRS FINL is 8.05 times less risky than Ambev SA. The bond trades about -0.18 of its potential returns per unit of risk. The Ambev SA ADR is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 177.00 in Ambev SA ADR on November 4, 2024 and sell it today you would earn a total of 8.00 from holding Ambev SA ADR or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
GENERAL MTRS FINL vs. Ambev SA ADR
Performance |
| Timeline |
| GENERAL MTRS FINL |
| Ambev SA ADR |
GENERAL and Ambev SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GENERAL and Ambev SA
The main advantage of trading using opposite GENERAL and Ambev SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GENERAL position performs unexpectedly, Ambev SA 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 Ambev SA will offset losses from the drop in Ambev SA's long position.| GENERAL vs. AEP TEX INC | GENERAL vs. US BANK NATIONAL | GENERAL vs. Bayerische Motoren Werke | GENERAL vs. Check Point Software |
| Ambev SA vs. Fomento Economico Mexicano | Ambev SA vs. Boston Beer | Ambev SA vs. Carlsberg AS | Ambev SA vs. Compania Cervecerias Unidas |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |