Correlation Analysis Between GM and Israel Index

This module allows you to analyze existing cross correlation between General Motors Company and Israel Index. You can compare the effects of market volatilities on GM and Israel Index 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 Israel Index. See also your portfolio center. Please also check ongoing floating volatility patterns of GM and Israel Index.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

General Motors Company  vs.  Israel Index

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, General Motors Company is expected to under-perform the Israel Index. In addition to that, GM is 1.87 times more volatile than Israel Index. It trades about -0.08 of its total potential returns per unit of risk. Israel Index is currently generating about 0.1 per unit of volatility. If you would invest  99,371  in Israel Index on November 6, 2019 and sell it today you would earn a total of  8,204  from holding Israel Index or generate 8.26% return on investment over 30 days.

Pair Corralation between GM and Israel Index

0.29
Time Period3 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy75.29%
ValuesDaily Returns

Diversification Opportunities for GM and Israel Index

General Motors Company diversification synergy

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding General Motors Company and Israel Index in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Israel Index 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 Company are associated (or correlated) with Israel Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Index has no effect on the direction of GM i.e. GM and Israel Index go up and down completely randomly.
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