Correlation Between GM and Xelpmoc Design

Can any of the company-specific risk be diversified away by investing in both GM and Xelpmoc Design 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 Xelpmoc Design into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between General Motors and Xelpmoc Design And, you can compare the effects of market volatilities on GM and Xelpmoc Design 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 Xelpmoc Design. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Xelpmoc Design.

Diversification Opportunities for GM and Xelpmoc Design

-0.31

Correlation Coefficient

GM  Xelpmoc Design

Very good diversification

The 3 months correlation between GM and Xelpmoc is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Xelpmoc Design And in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xelpmoc Design And 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 Xelpmoc Design. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xelpmoc Design And has no effect on the direction of GM i.e., GM and Xelpmoc Design go up and down completely randomly.

Pair Corralation between GM and Xelpmoc Design

Allowing for the 90-day total investment horizon General Motors is expected to generate 1.11 times more return on investment than Xelpmoc Design. However, GM is 1.11 times more volatile than Xelpmoc Design And. It trades about -0.13 of its potential returns per unit of risk. Xelpmoc Design And is currently generating about -0.32 per unit of risk. If you would invest  5,253  in General Motors on October 14, 2024 and sell it today you would lose (268.00) from holding General Motors or give up 5.1% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.0%
Values	Daily Returns

General Motors  vs.  Xelpmoc Design And

General Motors

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in General Motors are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, GM is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Xelpmoc Design And

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Xelpmoc Design And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's primary indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with GM and Xelpmoc Design

The main advantage of trading using opposite GM and Xelpmoc Design positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Xelpmoc Design 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 Xelpmoc Design will offset losses from the drop in Xelpmoc Design's long position.

The idea behind General Motors and Xelpmoc Design And 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.

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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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.