Correlation Analysis Between GM and Visa

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

Comparative Performance

General Motors  

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 latest unsteady performance, the Stock's technical indicators remain steady and the new chaos on Wall Street may also be a sign of medium term gains for the business stakeholders.

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Visa are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Inspite fairly stable primary indicators, Visa is not utilizing all of its potentials. The continuing stock price fuss, may contribute to near short-term losses for the directors.

GM and Visa Volatility Contrast

 Predicted Return Density 

General Motors Company  vs.  Visa Inc

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, General Motors Company is expected to under-perform the Visa. In addition to that, GM is 1.68 times more volatile than Visa. It trades about -0.09 of its total potential returns per unit of risk. Visa is currently generating about 0.05 per unit of volatility. If you would invest  17,635  in Visa on November 9, 2019 and sell it today you would earn a total of  602.00  from holding Visa or generate 3.41% return on investment over 30 days.

Pair Corralation between GM and Visa

Time Period3 Months [change]
ValuesDaily Returns

Diversification Opportunities for GM and Visa

General Motors Company diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding General Motors Company and Visa Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Visa 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa has no effect on the direction of GM i.e. GM and Visa go up and down completely randomly.
See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.