Correlation Analysis Between GM and Facebook

Analyzing 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.
Horizon     30 Days    Login   to change
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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 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.

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Facebook are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unfluctuating basic indicators, Facebook sustained solid returns over the last few months and may actually be approaching a breakup point.

GM and Facebook Volatility Contrast

 Predicted Return Density 

General Motors Company  vs.  Facebook Inc

 Performance (%) 

Pair Volatility

Allowing for the 30-days total investment horizon, General Motors Company is expected to under-perform the Facebook. In addition to that, GM is 1.22 times more volatile than Facebook. It trades about 0.0 of its total potential returns per unit of risk. Facebook is currently generating about 0.22 per unit of volatility. If you would invest  18,976  in Facebook on December 19, 2019 and sell it today you would earn a total of  3,238  from holding Facebook or generate 17.06% return on investment over 30 days.

Pair Corralation between GM and Facebook

Time Period3 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for GM and Facebook

General Motors Company diversification synergy

Very good 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.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.