Correlation Between Ford and Yunnan Yuntou
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By analyzing existing cross correlation between Ford Motor and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Ford and Yunnan Yuntou 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 with a short position of Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Yunnan Yuntou.
Diversification Opportunities for Ford and Yunnan Yuntou
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ford and Yunnan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Yunnan Yuntou Ecology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Yuntou Ecology and Ford 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 are associated (or correlated) with Yunnan Yuntou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Yuntou Ecology has no effect on the direction of Ford i.e., Ford and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Ford and Yunnan Yuntou
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.1 times more return on investment than Yunnan Yuntou. However, Ford is 1.1 times more volatile than Yunnan Yuntou Ecology. It trades about 0.01 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about -0.02 per unit of risk. If you would invest 1,132 in Ford Motor on August 26, 2024 and sell it today you would lose (14.00) from holding Ford Motor or give up 1.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.18% |
| Values | Daily Returns |
Ford Motor vs. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Ford Motor |
| Yunnan Yuntou Ecology |
Ford and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Yunnan Yuntou
The main advantage of trading using opposite Ford and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Yunnan Yuntou can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Yunnan Yuntou will offset losses from the drop in Yunnan Yuntou's long position.The idea behind Ford Motor and Yunnan Yuntou Ecology pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yunnan Yuntou vs. Fiberhome Telecommunication Technologies | Yunnan Yuntou vs. Wuhan Yangtze Communication | Yunnan Yuntou vs. Shenzhen Clou Electronics | Yunnan Yuntou vs. Hangzhou Weiguang Electronic |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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