Correlation Between GM and NCR Atleos
Can any of the company-specific risk be diversified away by investing in both GM and NCR Atleos 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 NCR Atleos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and NCR Atleos, you can compare the effects of market volatilities on GM and NCR Atleos 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 NCR Atleos. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and NCR Atleos.
Diversification Opportunities for GM and NCR Atleos
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GM and NCR is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and NCR Atleos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NCR Atleos 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 NCR Atleos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NCR Atleos has no effect on the direction of GM i.e., GM and NCR Atleos go up and down completely randomly.
Pair Corralation between GM and NCR Atleos
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.29 times more return on investment than NCR Atleos. However, GM is 1.29 times more volatile than NCR Atleos. It trades about 0.19 of its potential returns per unit of risk. NCR Atleos is currently generating about -0.05 per unit of risk. If you would invest 5,808 in General Motors on September 6, 2025 and sell it today you would earn a total of 1,797 from holding General Motors or generate 30.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. NCR Atleos
Performance |
| Timeline |
| General Motors |
| NCR Atleos |
GM and NCR Atleos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and NCR Atleos
The main advantage of trading using opposite GM and NCR Atleos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, NCR Atleos 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 NCR Atleos will offset losses from the drop in NCR Atleos' long position.| GM vs. Intelligent Protection Management | GM vs. United Industrial | GM vs. Greentown Management Holdings | GM vs. Corazon Mining |
| NCR Atleos vs. Fevertree Drinks Plc | NCR Atleos vs. Evolution Mining Limited | NCR Atleos vs. Molson Coors Beverage | NCR Atleos vs. Kingsrose Mining Limited |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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