Correlation Between GM and Concordium
Can any of the company-specific risk be diversified away by investing in both GM and Concordium 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 Concordium into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Concordium, you can compare the effects of market volatilities on GM and Concordium 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 Concordium. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Concordium.
Diversification Opportunities for GM and Concordium
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between GM and Concordium is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Concordium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Concordium 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 Concordium. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Concordium has no effect on the direction of GM i.e., GM and Concordium go up and down completely randomly.
Pair Corralation between GM and Concordium
Allowing for the 90-day total investment horizon GM is expected to generate 29.15 times less return on investment than Concordium. But when comparing it to its historical volatility, General Motors is 13.41 times less risky than Concordium. It trades about 0.08 of its potential returns per unit of risk. Concordium is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 0.35 in Concordium on July 18, 2025 and sell it today you would earn a total of 1.20 from holding Concordium or generate 338.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. Concordium
Performance |
| Timeline |
| General Motors |
| Concordium |
GM and Concordium Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Concordium
The main advantage of trading using opposite GM and Concordium positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Concordium 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 Concordium will offset losses from the drop in Concordium's long position.The idea behind General Motors and Concordium 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.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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |