Correlation Analysis Between GM and WisdomTree Dynamic

This module allows you to analyze existing cross correlation between General Motors Company and WisdomTree Dynamic Currency Hed. You can compare the effects of market volatilities on GM and WisdomTree Dynamic 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 WisdomTree Dynamic. See also your portfolio center. Please also check ongoing floating volatility patterns of GM and WisdomTree Dynamic.
Horizon     30 Days    Login   to change
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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.
WisdomTree Dynamic  
1010

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Dynamic Currency Hed are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days. In spite of rather weak fundamental drivers, WisdomTree Dynamic may actually be approaching a critical reversion point that can send shares even higher in January 2020.

GM and WisdomTree Dynamic Volatility Contrast

 Predicted Return Density 
      Returns 

General Motors Company  vs.  WisdomTree Dynamic Currency He

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, General Motors Company is expected to under-perform the WisdomTree Dynamic. In addition to that, GM is 2.29 times more volatile than WisdomTree Dynamic Currency Hed. It trades about -0.03 of its total potential returns per unit of risk. WisdomTree Dynamic Currency Hed is currently generating about 0.16 per unit of volatility. If you would invest  2,428  in WisdomTree Dynamic Currency Hed on November 15, 2019 and sell it today you would earn a total of  194.00  from holding WisdomTree Dynamic Currency Hed or generate 7.99% return on investment over 30 days.

Pair Corralation between GM and WisdomTree Dynamic

0.07
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy98.48%
ValuesDaily Returns

Diversification Opportunities for GM and WisdomTree Dynamic

General Motors Company diversification synergy

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding General Motors Company and WisdomTree Dynamic Currency He in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Dynamic 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 WisdomTree Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Dynamic has no effect on the direction of GM i.e. GM and WisdomTree Dynamic go up and down completely randomly.
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