Correlation Analysis Between GM and Facebook

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

General Motors Company  vs.  Facebook Inc

 Performance (%) 
      Timeline 

Pair Volatility

Allowing for the 30-days total investment horizon, General Motors Company is expected to generate 2.92 times more return on investment than Facebook. However, GM is 2.92 times more volatile than Facebook. It trades about 0.24 of its potential returns per unit of risk. Facebook is currently generating about 0.34 per unit of risk. If you would invest  3,809  in General Motors Company on May 19, 2018 and sell it today you would earn a total of  585.00  from holding General Motors Company or generate 15.36% return on investment over 30 days.

Pair Corralation between GM and Facebook

0.83
Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
General Motors  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in General Motors Company are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.
Facebook  
22 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 22 (%) of all global equities and portfolios over the last 30 days.

My Equities

My Current Equities and Potential Positions
View AllNext
GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1173.46

Thematic Opportunities

Explore Investment Opportunities
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  
See also your portfolio center. Please also try Watchlist Optimization module to optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm.