Correlation Between GM and OneSpaWorld Holdings
Can any of the company-specific risk be diversified away by investing in both GM and OneSpaWorld Holdings 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 OneSpaWorld Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and OneSpaWorld Holdings, you can compare the effects of market volatilities on GM and OneSpaWorld Holdings 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 OneSpaWorld Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and OneSpaWorld Holdings.
Diversification Opportunities for GM and OneSpaWorld Holdings
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between GM and OneSpaWorld is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and OneSpaWorld Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OneSpaWorld Holdings 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 OneSpaWorld Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OneSpaWorld Holdings has no effect on the direction of GM i.e., GM and OneSpaWorld Holdings go up and down completely randomly.
Pair Corralation between GM and OneSpaWorld Holdings
Allowing for the 90-day total investment horizon General Motors is expected to generate 1.16 times more return on investment than OneSpaWorld Holdings. However, GM is 1.16 times more volatile than OneSpaWorld Holdings. It trades about 0.08 of its potential returns per unit of risk. OneSpaWorld Holdings is currently generating about -0.05 per unit of risk. If you would invest 5,307 in General Motors on July 20, 2025 and sell it today you would earn a total of 531.00 from holding General Motors or generate 10.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Motors vs. OneSpaWorld Holdings
Performance |
| Timeline |
| General Motors |
| OneSpaWorld Holdings |
GM and OneSpaWorld Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and OneSpaWorld Holdings
The main advantage of trading using opposite GM and OneSpaWorld Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, OneSpaWorld Holdings 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 OneSpaWorld Holdings will offset losses from the drop in OneSpaWorld Holdings' long position.The idea behind General Motors and OneSpaWorld Holdings 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.| OneSpaWorld Holdings vs. Six Flags Entertainment | OneSpaWorld Holdings vs. Wolverine World Wide | OneSpaWorld Holdings vs. Under Armour A | OneSpaWorld Holdings vs. LCI Industries |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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