Correlation Between GM and Mogotes Metals
Can any of the company-specific risk be diversified away by investing in both GM and Mogotes Metals 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 Mogotes Metals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and Mogotes Metals, you can compare the effects of market volatilities on GM and Mogotes Metals 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 Mogotes Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and Mogotes Metals.
Diversification Opportunities for GM and Mogotes Metals
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GM and Mogotes is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and Mogotes Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogotes Metals 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 Mogotes Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogotes Metals has no effect on the direction of GM i.e., GM and Mogotes Metals go up and down completely randomly.
Pair Corralation between GM and Mogotes Metals
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.56 times more return on investment than Mogotes Metals. However, General Motors is 1.79 times less risky than Mogotes Metals. It trades about 0.24 of its potential returns per unit of risk. Mogotes Metals is currently generating about 0.03 per unit of risk. If you would invest 5,807 in General Motors on October 6, 2025 and sell it today you would earn a total of 2,291 from holding General Motors or generate 39.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
General Motors vs. Mogotes Metals
Performance |
| Timeline |
| General Motors |
| Mogotes Metals |
GM and Mogotes Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and Mogotes Metals
The main advantage of trading using opposite GM and Mogotes Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, Mogotes Metals 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 Mogotes Metals will offset losses from the drop in Mogotes Metals' long position.The idea behind General Motors and Mogotes Metals 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.| Mogotes Metals vs. Canadian General Investments | Mogotes Metals vs. Osisko Metals Incorporated | Mogotes Metals vs. Lion One Metals | Mogotes Metals vs. Precious Metals And |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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