Correlation Analysis Between GM and Ford Motor

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

Comparative Performance

General Motors  
00

Risk-Adjusted Performance

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  
00

Risk-Adjusted Performance

Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Ford Motor is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.

GM and Ford Motor Volatility Contrast

 Predicted Return Density 
      Returns 

General Motors Company  vs.  Ford Motor Company

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, General Motors Company is expected to under-perform the Ford Motor. In addition to that, GM is 1.14 times more volatile than Ford Motor Company. It trades about 0.0 of its total potential returns per unit of risk. Ford Motor Company is currently generating about 0.0 per unit of volatility. If you would invest  877.00  in Ford Motor Company on October 22, 2019 and sell it today you would lose (7.00)  from holding Ford Motor Company or give up 0.8% of portfolio value over 30 days.

Pair Corralation between GM and Ford Motor

0.66
Time Period3 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for GM and Ford Motor

General Motors Company diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding General Motors Company and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of GM i.e. GM and Ford Motor go up and down completely randomly.
See also your portfolio center. Please also try World Markets Correlation module to find global opportunities by holding instruments from different markets.


 
Search macroaxis.com