Correlation Between GM and Sintex Plastics
Can any of the company-specific risk be diversified away by investing in both GM and Sintex Plastics 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 Sintex Plastics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Sintex Plastics Technology, you can compare the effects of market volatilities on GM and Sintex Plastics 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 Sintex Plastics. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Sintex Plastics.
Diversification Opportunities for GM and Sintex Plastics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GM and Sintex is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Sintex Plastics Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sintex Plastics Tech 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 Sintex Plastics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sintex Plastics Tech has no effect on the direction of GM i.e., GM and Sintex Plastics go up and down completely randomly.
Pair Corralation between GM and Sintex Plastics
If you would invest 106.00 in Sintex Plastics Technology on December 1, 2024 and sell it today you would earn a total of 0.00 from holding Sintex Plastics Technology or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 96.77% |
Values | Daily Returns |
General Motors vs. Sintex Plastics Technology
Performance |
Timeline |
General Motors |
Sintex Plastics Tech |
GM and Sintex Plastics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with GM and Sintex Plastics
The main advantage of trading using opposite GM and Sintex Plastics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Sintex Plastics 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 Sintex Plastics will offset losses from the drop in Sintex Plastics' long position.The idea behind General Motors and Sintex Plastics Technology 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.Sintex Plastics vs. NMDC Limited | Sintex Plastics vs. Steel Authority of | Sintex Plastics vs. Embassy Office Parks | Sintex Plastics vs. Jai Balaji Industries |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |