Correlation Between GM and LG Gerd
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and LG Gerd Kommer, you can compare the effects of market volatilities on GM and LG Gerd 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 LG Gerd. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and LG Gerd.
Diversification Opportunities for GM and LG Gerd
Poor diversification
The 3 months correlation between GM and GERD is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and LG Gerd Kommer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LG Gerd Kommer 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 LG Gerd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LG Gerd Kommer has no effect on the direction of GM i.e., GM and LG Gerd go up and down completely randomly.
Pair Corralation between GM and LG Gerd
Allowing for the 90-day total investment horizon General Motors is expected to under-perform the LG Gerd. In addition to that, GM is 4.51 times more volatile than LG Gerd Kommer. It trades about -0.22 of its total potential returns per unit of risk. LG Gerd Kommer is currently generating about -0.17 per unit of volatility. If you would invest 1,205 in LG Gerd Kommer on September 26, 2024 and sell it today you would lose (24.00) from holding LG Gerd Kommer or give up 1.99% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
General Motors vs. LG Gerd Kommer
Performance |
Timeline |
General Motors |
LG Gerd Kommer |
GM and LG Gerd Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GM and LG Gerd
The main advantage of trading using opposite GM and LG Gerd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, LG Gerd 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 LG Gerd will offset losses from the drop in LG Gerd's long position.The idea behind General Motors and LG Gerd Kommer 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.LG Gerd vs. UBS Fund Solutions | LG Gerd vs. Xtrackers II | LG Gerd vs. Xtrackers Nikkei 225 | LG Gerd vs. iShares VII PLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |