Correlation Between GM and BankInvest Lange
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and BankInvest Lange Danske, you can compare the effects of market volatilities on GM and BankInvest Lange 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 BankInvest Lange. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and BankInvest Lange.
Diversification Opportunities for GM and BankInvest Lange
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GM and BankInvest is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and BankInvest Lange Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BankInvest Lange Danske 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 BankInvest Lange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BankInvest Lange Danske has no effect on the direction of GM i.e., GM and BankInvest Lange go up and down completely randomly.
Pair Corralation between GM and BankInvest Lange
Allowing for the 90-day total investment horizon General Motors is expected to generate 7.45 times more return on investment than BankInvest Lange. However, GM is 7.45 times more volatile than BankInvest Lange Danske. It trades about 0.06 of its potential returns per unit of risk. BankInvest Lange Danske is currently generating about 0.08 per unit of risk. If you would invest 3,773 in General Motors on January 24, 2024 and sell it today you would earn a total of 737.00 from holding General Motors or generate 19.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.47% |
| Values | Daily Returns |
General Motors vs. BankInvest Lange Danske
Performance |
| Timeline |
| General Motors |
| BankInvest Lange Danske |
GM and BankInvest Lange Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and BankInvest Lange
The main advantage of trading using opposite GM and BankInvest Lange positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, BankInvest Lange 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 BankInvest Lange will offset losses from the drop in BankInvest Lange's long position.The idea behind General Motors and BankInvest Lange Danske 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.| BankInvest Lange vs. Jyske Invest Nye | BankInvest Lange vs. Jyske Invest Nye | BankInvest Lange vs. Jyske Invest Hjt | BankInvest Lange vs. Jyske Invest Lange |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |