Correlation Between GM and Bank of Maharashtra
Specify exactly 2 symbols:
By analyzing existing cross correlation between General Motors and Bank of Maharashtra, you can compare the effects of market volatilities on GM and Bank of Maharashtra 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 Bank of Maharashtra. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Bank of Maharashtra.
Diversification Opportunities for GM and Bank of Maharashtra
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GM and Bank is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Bank of Maharashtra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Maharashtra 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 Bank of Maharashtra. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Maharashtra has no effect on the direction of GM i.e., GM and Bank of Maharashtra go up and down completely randomly.
Pair Corralation between GM and Bank of Maharashtra
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.84 times more return on investment than Bank of Maharashtra. However, General Motors is 1.19 times less risky than Bank of Maharashtra. It trades about -0.07 of its potential returns per unit of risk. Bank of Maharashtra is currently generating about -0.11 per unit of risk. If you would invest 5,492 in General Motors on December 1, 2024 and sell it today you would lose (579.00) from holding General Motors or give up 10.54% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 96.77% |
Values | Daily Returns |
General Motors vs. Bank of Maharashtra
Performance |
Timeline |
General Motors |
Bank of Maharashtra |
GM and Bank of Maharashtra Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GM and Bank of Maharashtra
The main advantage of trading using opposite GM and Bank of Maharashtra positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Bank of Maharashtra 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 Bank of Maharashtra will offset losses from the drop in Bank of Maharashtra's long position.The idea behind General Motors and Bank of Maharashtra 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.Bank of Maharashtra vs. SBI Life Insurance | Bank of Maharashtra vs. ILFS Investment Managers | Bank of Maharashtra vs. Action Construction Equipment | Bank of Maharashtra vs. Welspun Investments and |
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..
Other Complementary Tools
Stocks Directory Find actively traded stocks across global markets | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |