This module allows you to analyze existing cross correlation between General Motors Company and NZSE. You can compare the effects of market volatilities on GM and NZSE 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 NZSE. See also your portfolio center. Please also check ongoing floating volatility patterns of GM and NZSE.
|Horizon||30 Days Login to change|
Predicted Return Density
General Motors Company vs. NZSE
Allowing for the 30-days total investment horizon, GM is expected to generate 1.2 times less return on investment than NZSE. In addition to that, GM is 1.93 times more volatile than NZSE. It trades about 0.04 of its total potential returns per unit of risk. NZSE is currently generating about 0.1 per unit of volatility. If you would invest 1,032,729 in NZSE on August 20, 2019 and sell it today you would earn a total of 47,376 from holding NZSE or generate 4.59% return on investment over 30 days.
Pair Corralation between GM and NZSE
|Time Period||3 Months [change]|
Diversification Opportunities for GM and NZSE
Overlapping area represents the amount of risk that can be diversified away by holding General Motors Company and NZSE in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NZSE 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 NZSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NZSE has no effect on the direction of GM i.e. GM and NZSE go up and down completely randomly.
See also your portfolio center. Please also try Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.