Correlation Analysis Between GM and SPTSX Comp

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

 Predicted Return Density 
      Returns 

General Motors Company  vs.  SPTSX Comp

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, General Motors Company is expected to generate 2.37 times more return on investment than SPTSX Comp. However, GM is 2.37 times more volatile than SPTSX Comp. It trades about 0.01 of its potential returns per unit of risk. SPTSX Comp is currently generating about -0.08 per unit of risk. If you would invest  3,696  in General Motors Company on July 22, 2019 and sell it today you would earn a total of  0.00  from holding General Motors Company or generate 0.0% return on investment over 30 days.

Pair Corralation between GM and SPTSX Comp

0.33
Time Period2 Months [change]
DirectionPositive 
StrengthVery Weak
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for GM and SPTSX Comp

General Motors Company diversification synergy

Weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding General Motors Company and SPTSX Comp in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on SPTSX Comp 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 SPTSX Comp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPTSX Comp has no effect on the direction of GM i.e. GM and SPTSX Comp go up and down completely randomly.
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See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.


 
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