Correlation Between GM and Hugo Boss
Can any of the company-specific risk be diversified away by investing in both GM and Hugo Boss 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 Hugo Boss into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Hugo Boss AG, you can compare the effects of market volatilities on GM and Hugo Boss 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 Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Hugo Boss.
Diversification Opportunities for GM and Hugo Boss
Pay attention - limited upside
The 3 months correlation between GM and Hugo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG 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 Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of GM i.e., GM and Hugo Boss go up and down completely randomly.
Pair Corralation between GM and Hugo Boss
If you would invest 3,805 in General Motors on January 18, 2024 and sell it today you would earn a total of 461.00 from holding General Motors or generate 12.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
General Motors vs. Hugo Boss AG
Performance |
Timeline |
General Motors |
Hugo Boss AG |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
GM and Hugo Boss Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GM and Hugo Boss
The main advantage of trading using opposite GM and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.GM vs. Hycroft Mining Holding | GM vs. Exela Technologies | GM vs. Aquagold International | GM vs. Thrivent High Yield |
Hugo Boss vs. MONSTER BEVERAGE P | Hugo Boss vs. COMPUTERSHARE | Hugo Boss vs. The Boston Beer | Hugo Boss vs. BOSTON BEER A |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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