This module allows you to analyze existing cross correlation between General Motors Company and XU100. You can compare the effects of market volatilities on GM and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of GM and XU100.
|Horizon||30 Days Login to change|
Predicted Return Density
General Motors Company vs. XU100
Allowing for the 30-days total investment horizon, General Motors Company is expected to generate 1.16 times more return on investment than XU100. However, GM is 1.16 times more volatile than XU100. It trades about 0.04 of its potential returns per unit of risk. XU100 is currently generating about -0.16 per unit of risk. If you would invest 3,656 in General Motors Company on August 20, 2019 and sell it today you would earn a total of 122.00 from holding General Motors Company or generate 3.34% return on investment over 30 days.
Pair Corralation between GM and XU100
|Time Period||3 Months [change]|
Diversification Opportunities for GM and XU100
Overlapping area represents the amount of risk that can be diversified away by holding General Motors Company and XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of GM i.e. GM and XU100 go up and down completely randomly.
See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.