Correlation Between GM and Kartoon Studios,

Can any of the company-specific risk be diversified away by investing in both GM and Kartoon Studios, 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 Kartoon Studios, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between General Motors and Kartoon Studios,, you can compare the effects of market volatilities on GM and Kartoon Studios, 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 Kartoon Studios,. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Kartoon Studios,.

Diversification Opportunities for GM and Kartoon Studios,

-0.49

Correlation Coefficient

GM  Kartoon Studios,

Very good diversification

The 3 months correlation between GM and Kartoon is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Kartoon Studios, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartoon Studios, 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 Kartoon Studios,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartoon Studios, has no effect on the direction of GM i.e., GM and Kartoon Studios, go up and down completely randomly.

Pair Corralation between GM and Kartoon Studios,

Allowing for the 90-day total investment horizon General Motors is expected to generate 0.49 times more return on investment than Kartoon Studios,. However, General Motors is 2.06 times less risky than Kartoon Studios,. It trades about -0.16 of its potential returns per unit of risk. Kartoon Studios, is currently generating about -0.4 per unit of risk. If you would invest  5,758  in General Motors on September 14, 2024 and sell it today you would lose (528.00) from holding General Motors or give up 9.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

General Motors  vs.  Kartoon Studios,

General Motors

Risk-Adjusted Performance

6 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in General Motors are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very weak primary indicators, GM displayed solid returns over the last few months and may actually be approaching a breakup point.

Kartoon Studios,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kartoon Studios, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with GM and Kartoon Studios,

The main advantage of trading using opposite GM and Kartoon Studios, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Kartoon Studios, 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 Kartoon Studios, will offset losses from the drop in Kartoon Studios,'s long position.

The idea behind General Motors and Kartoon Studios, 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.

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 Money Managers module to screen money managers from public funds and ETFs managed around the world.