Correlation Between GM and FUJIAN AONONG

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both GM and FUJIAN AONONG 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 FUJIAN AONONG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and FUJIAN AONONG BIOLOGICAL, you can compare the effects of market volatilities on GM and FUJIAN AONONG 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 FUJIAN AONONG. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and FUJIAN AONONG.

Diversification Opportunities for GM and FUJIAN AONONG

-0.02
  Correlation Coefficient

Good diversification

The 3 months correlation between GM and FUJIAN is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and FUJIAN AONONG BIOLOGICAL TECHN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUJIAN AONONG BIOLOG 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 FUJIAN AONONG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUJIAN AONONG BIOLOG has no effect on the direction of GM i.e., GM and FUJIAN AONONG go up and down completely randomly.

Pair Corralation between GM and FUJIAN AONONG

Allowing for the 90-day total investment horizon GM is expected to generate 2.01 times less return on investment than FUJIAN AONONG. But when comparing it to its historical volatility, General Motors is 1.61 times less risky than FUJIAN AONONG. It trades about 0.02 of its potential returns per unit of risk. FUJIAN AONONG BIOLOGICAL is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,455  in FUJIAN AONONG BIOLOGICAL on June 29, 2022 and sell it today you would earn a total of  160.00  from holding FUJIAN AONONG BIOLOGICAL or generate 11.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy78.67%
ValuesDaily Returns

General Motors  vs.  FUJIAN AONONG BIOLOGICAL TECHN

 Performance (%) 
       Timeline  
General Motors 
GM Performance
3 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in General Motors are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal primary indicators, GM may actually be approaching a critical reversion point that can send shares even higher in October 2022.

GM Price Channel

FUJIAN AONONG BIOLOG 
FUJIAN Performance
0 of 100
Over the last 90 days FUJIAN AONONG BIOLOGICAL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

FUJIAN Price Channel

GM and FUJIAN AONONG Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with GM and FUJIAN AONONG

The main advantage of trading using opposite GM and FUJIAN AONONG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, FUJIAN AONONG 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 FUJIAN AONONG will offset losses from the drop in FUJIAN AONONG's long position.
GM vs. Clearwater Paper Corp
The idea behind General Motors and FUJIAN AONONG BIOLOGICAL 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.
FUJIAN AONONG vs. CHONG QING CHANGAN
FUJIAN AONONG vs. CHONG QING CHANGAN
FUJIAN AONONG vs. LAOBAIXING PHARMACY CHAIN
FUJIAN AONONG vs. AIER EYE HOSPITAL
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Financial Widgets
Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets
Go
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Bollinger Bands
Use Bollinger Bands indicator to analyze target price for a given investing horizon
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go