Correlation Between GM and Sydinvest Virksomhedsoblig
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By analyzing existing cross correlation between General Motors and Sydinvest Virksomhedsobligationer HY, you can compare the effects of market volatilities on GM and Sydinvest Virksomhedsoblig 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 Sydinvest Virksomhedsoblig. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Sydinvest Virksomhedsoblig.
Diversification Opportunities for GM and Sydinvest Virksomhedsoblig
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GM and Sydinvest is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Sydinvest Virksomhedsobligatio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sydinvest Virksomhedsoblig 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 Sydinvest Virksomhedsoblig. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sydinvest Virksomhedsoblig has no effect on the direction of GM i.e., GM and Sydinvest Virksomhedsoblig go up and down completely randomly.
Pair Corralation between GM and Sydinvest Virksomhedsoblig
Allowing for the 90-day total investment horizon General Motors is expected to generate 4.57 times more return on investment than Sydinvest Virksomhedsoblig. However, GM is 4.57 times more volatile than Sydinvest Virksomhedsobligationer HY. It trades about 0.09 of its potential returns per unit of risk. Sydinvest Virksomhedsobligationer HY is currently generating about -0.03 per unit of risk. If you would invest 4,151 in General Motors on January 19, 2024 and sell it today you would earn a total of 104.00 from holding General Motors or generate 2.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.91% |
| Values | Daily Returns |
General Motors vs. Sydinvest Virksomhedsobligatio
Performance |
| Timeline |
| General Motors |
| Sydinvest Virksomhedsoblig |
GM and Sydinvest Virksomhedsoblig Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Sydinvest Virksomhedsoblig
The main advantage of trading using opposite GM and Sydinvest Virksomhedsoblig positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Sydinvest Virksomhedsoblig 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 Sydinvest Virksomhedsoblig will offset losses from the drop in Sydinvest Virksomhedsoblig's long position.The idea behind General Motors and Sydinvest Virksomhedsobligationer HY 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.| Sydinvest Virksomhedsoblig vs. Jyske Invest Nye | Sydinvest Virksomhedsoblig vs. Jyske Invest Nye | Sydinvest Virksomhedsoblig vs. Jyske Invest Hjt | Sydinvest Virksomhedsoblig 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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