Correlation Between Eternal Hospitality and GM
Can any of the company-specific risk be diversified away by investing in both Eternal Hospitality and GM 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 Eternal Hospitality and GM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eternal Hospitality Group and General Motors, you can compare the effects of market volatilities on Eternal Hospitality and GM 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 Eternal Hospitality with a short position of GM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eternal Hospitality and GM.
Diversification Opportunities for Eternal Hospitality and GM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eternal and GM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Eternal Hospitality Group and General Motors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on General Motors and Eternal Hospitality 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 Eternal Hospitality Group are associated (or correlated) with GM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Motors has no effect on the direction of Eternal Hospitality i.e., Eternal Hospitality and GM go up and down completely randomly.
Pair Corralation between Eternal Hospitality and GM
If you would invest 5,723 in General Motors on September 10, 2025 and sell it today you would earn a total of 1,848 from holding General Motors or generate 32.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Eternal Hospitality Group vs. General Motors
Performance |
| Timeline |
| Eternal Hospitality |
| General Motors |
Eternal Hospitality and GM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eternal Hospitality and GM
The main advantage of trading using opposite Eternal Hospitality and GM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eternal Hospitality position performs unexpectedly, GM 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 GM will offset losses from the drop in GM's long position.| Eternal Hospitality vs. Electronic Arts | Eternal Hospitality vs. National Bank of | Eternal Hospitality vs. Shanghai Fudan Microelectronics | Eternal Hospitality vs. Woori Financial Group |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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