Correlation Between GM and HANetf ICAV
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By analyzing existing cross correlation between General Motors and HANetf ICAV , you can compare the effects of market volatilities on GM and HANetf ICAV 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 HANetf ICAV. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and HANetf ICAV.
Diversification Opportunities for GM and HANetf ICAV
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between GM and HANetf is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and HANetf ICAV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANetf ICAV 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 HANetf ICAV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANetf ICAV has no effect on the direction of GM i.e., GM and HANetf ICAV go up and down completely randomly.
Pair Corralation between GM and HANetf ICAV
Allowing for the 90-day total investment horizon General Motors is expected to generate 2.0 times more return on investment than HANetf ICAV. However, GM is 2.0 times more volatile than HANetf ICAV . It trades about 0.09 of its potential returns per unit of risk. HANetf ICAV is currently generating about 0.14 per unit of risk. If you would invest 3,568 in General Motors on September 25, 2024 and sell it today you would earn a total of 1,613 from holding General Motors or generate 45.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.02% |
Values | Daily Returns |
General Motors vs. HANetf ICAV
Performance |
Timeline |
General Motors |
HANetf ICAV |
GM and HANetf ICAV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GM and HANetf ICAV
The main advantage of trading using opposite GM and HANetf ICAV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, HANetf ICAV 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 HANetf ICAV will offset losses from the drop in HANetf ICAV's long position.The idea behind General Motors and HANetf ICAV 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.HANetf ICAV vs. UBS Fund Solutions | HANetf ICAV vs. Xtrackers II | HANetf ICAV vs. Xtrackers Nikkei 225 | HANetf ICAV vs. iShares VII PLC |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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