Correlation Between GM and ASR Nederland
Can any of the company-specific risk be diversified away by investing in both GM and ASR Nederland 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 ASR Nederland into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and ASR Nederland NV, you can compare the effects of market volatilities on GM and ASR Nederland 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 ASR Nederland. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and ASR Nederland.
Diversification Opportunities for GM and ASR Nederland
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GM and ASR is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and ASR Nederland NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASR Nederland NV 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 ASR Nederland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASR Nederland NV has no effect on the direction of GM i.e., GM and ASR Nederland go up and down completely randomly.
Pair Corralation between GM and ASR Nederland
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.99 times more return on investment than ASR Nederland. However, GM is 1.99 times more volatile than ASR Nederland NV. It trades about 0.13 of its potential returns per unit of risk. ASR Nederland NV is currently generating about 0.07 per unit of risk. If you would invest 5,206 in General Motors on July 8, 2025 and sell it today you would earn a total of 807.00 from holding General Motors or generate 15.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
General Motors vs. ASR Nederland NV
Performance |
| Timeline |
| General Motors |
| ASR Nederland NV |
GM and ASR Nederland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and ASR Nederland
The main advantage of trading using opposite GM and ASR Nederland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, ASR Nederland 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 ASR Nederland will offset losses from the drop in ASR Nederland's long position.The idea behind General Motors and ASR Nederland NV 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.| ASR Nederland vs. NN Group NV | ASR Nederland vs. Koninklijke Ahold Delhaize | ASR Nederland vs. BE Semiconductor Industries | ASR Nederland vs. Aegon NV |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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