Correlation Between GM and 670346AU9
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and NUE 2979 15 DEC 55, you can compare the effects of market volatilities on GM and 670346AU9 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 670346AU9. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and 670346AU9.
Diversification Opportunities for GM and 670346AU9
Excellent diversification
The 3 months correlation between GM and 670346AU9 is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and NUE 2979 15 DEC 55 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NUE 2979 15 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 670346AU9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NUE 2979 15 has no effect on the direction of GM i.e., GM and 670346AU9 go up and down completely randomly.
Pair Corralation between GM and 670346AU9
Allowing for the 90-day total investment horizon GM is expected to generate 1.03 times less return on investment than 670346AU9. But when comparing it to its historical volatility, General Motors is 1.2 times less risky than 670346AU9. It trades about 0.06 of its potential returns per unit of risk. NUE 2979 15 DEC 55 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 6,551 in NUE 2979 15 DEC 55 on September 24, 2024 and sell it today you would earn a total of 388.00 from holding NUE 2979 15 DEC 55 or generate 5.92% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 79.69% |
Values | Daily Returns |
General Motors vs. NUE 2979 15 DEC 55
Performance |
Timeline |
General Motors |
NUE 2979 15 |
GM and 670346AU9 Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GM and 670346AU9
The main advantage of trading using opposite GM and 670346AU9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, 670346AU9 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 670346AU9 will offset losses from the drop in 670346AU9's long position.The idea behind General Motors and NUE 2979 15 DEC 55 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.670346AU9 vs. Celsius Holdings | 670346AU9 vs. Cementos Pacasmayo SAA | 670346AU9 vs. Griffon | 670346AU9 vs. Nascent Wine |
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.
Other Complementary Tools
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |