Correlation Analysis Between Blue Bird and GM

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

Comparative Performance

Blue Bird  
00

Risk-Adjusted Performance

Over the last 30 days Blue Bird Corporation has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's fundamental drivers remain sound and the ongoing tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.
General Motors  
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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 latest unsteady performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.

Blue Bird and GM Volatility Contrast

 Predicted Return Density 
      Returns 

Blue Bird Corp.  vs.  General Motors Company

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Blue Bird Corporation is expected to under-perform the GM. In addition to that, Blue Bird is 1.65 times more volatile than General Motors Company. It trades about -0.09 of its total potential returns per unit of risk. General Motors Company is currently generating about -0.09 per unit of volatility. If you would invest  3,813  in General Motors Company on July 26, 2019 and sell it today you would lose (207.00)  from holding General Motors Company or give up 5.43% of portfolio value over 30 days.

Pair Corralation between Blue Bird and GM

0.82
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy97.73%
ValuesDaily Returns

Diversification Opportunities for Blue Bird and GM

Blue Bird Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Blue Bird Corp. and General Motors Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on General Motors and Blue Bird 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 Blue Bird Corporation 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 Blue Bird i.e. Blue Bird and GM go up and down completely randomly.
See also your portfolio center. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.


 
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