Correlation Between GM and PS International
Can any of the company-specific risk be diversified away by investing in both GM and PS International 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 PS International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Motors and PS International Group, you can compare the effects of market volatilities on GM and PS International 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 PS International. Check out your portfolio center. Please also check ongoing floating volatility patterns of GM and PS International.
Diversification Opportunities for GM and PS International
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GM and PSIG is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding General Motors and PS International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PS International 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 PS International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PS International has no effect on the direction of GM i.e., GM and PS International go up and down completely randomly.
Pair Corralation between GM and PS International
Allowing for the 90-day total investment horizon General Motors is expected to generate 0.41 times more return on investment than PS International. However, General Motors is 2.42 times less risky than PS International. It trades about 0.22 of its potential returns per unit of risk. PS International Group is currently generating about 0.05 per unit of risk. If you would invest 5,838 in General Motors on September 12, 2025 and sell it today you would earn a total of 2,247 from holding General Motors or generate 38.49% 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. PS International Group
Performance |
| Timeline |
| General Motors |
| PS International |
GM and PS International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GM and PS International
The main advantage of trading using opposite GM and PS International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GM position performs unexpectedly, PS International 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 PS International will offset losses from the drop in PS International's long position.The idea behind General Motors and PS International Group 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.| PS International vs. New Century Logistics | PS International vs. Lakeside Holding Limited | PS International vs. Addentax Group Corp | PS International vs. Polar Power |
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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |