This module allows you to analyze existing cross correlation between Ford Motor Company and General Motors Company. You can compare the effects of market volatilities on Ford Motor 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 Ford Motor with a short position of GM. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and GM.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days. In spite of rather sluggish fundamental drivers, Ford Motor exhibited solid returns over the last few months and may actually be approaching a breakup point.
Over the last 30 days General Motors Company has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, GM is not utilizing all of its potentials. The ongoing stock price chaos, may contribute to medium term losses for the stakeholders.
Ford Motor and GM Volatility Contrast
Predicted Return Density
Ford Motor Company vs. General Motors Company
Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 1.74 times more return on investment than GM. However, Ford Motor is 1.74 times more volatile than General Motors Company. It trades about 0.25 of its potential returns per unit of risk. General Motors Company is currently generating about 0.0 per unit of risk. If you would invest 837.77 in Ford Motor Company on April 22, 2019 and sell it today you would earn a total of 186.23 from holding Ford Motor Company or generate 22.23% return on investment over 30 days.
Pair Corralation between Ford Motor and GM
|Time Period||2 Months [change]|
Diversification Opportunities for Ford Motor and GM
Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and General Motors Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on General Motors and Ford Motor 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 Ford Motor Company 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 Ford Motor i.e. Ford Motor and GM go up and down completely randomly.
See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.