Correlation Analysis Between Ford Motor and GM

This module allows you to analyze existing cross correlation between Ford Motor Company and General Motors Company. You can compare the effects of market volatilities on Ford Motor and GM 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 Ford Motor with a short position of GM. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and GM.
Horizon     30 Days    Login   to change
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Comparative Performance

Ford Motor  

Risk-Adjusted Performance

Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of sluggish performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in September 2019. The ongoing tumult may also be a sign of longer-term up-swing for the firm shareholders.
General Motors  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in General Motors Company are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Even with considerably steady technical indicators, GM is not utilizing all of its potentials. The late stock price chaos, may contribute to medium term losses for the stakeholders.

Ford Motor and GM Volatility Contrast

 Predicted Return Density 

Ford Motor Company  vs.  General Motors Company

 Performance (%) 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the GM. In addition to that, Ford Motor is 1.34 times more volatile than General Motors Company. It trades about -0.16 of its total potential returns per unit of risk. General Motors Company is currently generating about 0.02 per unit of volatility. If you would invest  3,670  in General Motors Company on July 18, 2019 and sell it today you would earn a total of  30.00  from holding General Motors Company or generate 0.82% return on investment over 30 days.

Pair Corralation between Ford Motor and GM

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Ford Motor and GM

Ford Motor Company diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and General Motors Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on General Motors and Ford Motor 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 Ford Motor Company are associated (or correlated) with GM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of General Motors has no effect on the direction of Ford Motor i.e. Ford Motor and GM go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.