Correlation Analysis Between Fiat Chrysler and GM

This module allows you to analyze existing cross correlation between Fiat Chrysler Automobiles N V and General Motors Company. You can compare the effects of market volatilities on Fiat Chrysler 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 Fiat Chrysler with a short position of GM. See also your portfolio center. Please also check ongoing floating volatility patterns of Fiat Chrysler and GM.
Horizon     30 Days    Login   to change
Symbolsvs
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Comparative Performance

Fiat Chrysler Automo  
00

Risk-Adjusted Performance

Over the last 30 days Fiat Chrysler Automobiles N V has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's essential indicators remain comparatively unchanging which may send shares a bit higher in September 2019. The late uproar may also be a sign of mid-term up-swing for the firm leadership.
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.

Fiat Chrysler and GM Volatility Contrast

 Predicted Return Density 
      Returns 

Fiat Chrysler Automobiles N V  vs.  General Motors Company

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Fiat Chrysler Automobiles N V is expected to under-perform the GM. In addition to that, Fiat Chrysler is 1.31 times more volatile than General Motors Company. It trades about -0.12 of its total potential returns per unit of risk. General Motors Company is currently generating about -0.03 per unit of volatility. If you would invest  3,768  in General Motors Company on July 25, 2019 and sell it today you would lose (72.00)  from holding General Motors Company or give up 1.91% of portfolio value over 30 days.

Pair Corralation between Fiat Chrysler and GM

0.38
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Fiat Chrysler and GM

Fiat Chrysler Automobiles N V diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Fiat Chrysler Automobiles N V and General Motors Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on General Motors and Fiat Chrysler 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 Fiat Chrysler Automobiles N V 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 Fiat Chrysler i.e. Fiat Chrysler and GM go up and down completely randomly.
See also your portfolio center. Please also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.


 
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