Correlation Between Ford and CI Global
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By analyzing existing cross correlation between Ford Motor and CI Global Resource, you can compare the effects of market volatilities on Ford and CI Global 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 CI Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and CI Global.
Diversification Opportunities for Ford and CI Global
Modest diversification
The 3 months correlation between Ford and 0P000070I2 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and CI Global Resource in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Global Resource 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 CI Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Global Resource has no effect on the direction of Ford i.e., Ford and CI Global go up and down completely randomly.
Pair Corralation between Ford and CI Global
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.19 times more return on investment than CI Global. However, Ford is 2.19 times more volatile than CI Global Resource. It trades about 0.14 of its potential returns per unit of risk. CI Global Resource is currently generating about 0.07 per unit of risk. If you would invest 1,022 in Ford Motor on September 4, 2024 and sell it today you would earn a total of 60.00 from holding Ford Motor or generate 5.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. CI Global Resource
Performance |
| Timeline |
| Ford Motor |
| CI Global Resource |
Ford and CI Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and CI Global
The main advantage of trading using opposite Ford and CI Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, CI Global 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 CI Global will offset losses from the drop in CI Global's long position.The idea behind Ford Motor and CI Global Resource 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.| CI Global vs. iShares Canadian HYBrid | CI Global vs. Altagas Cum Red | CI Global vs. European Residential Real | CI Global vs. iShares Fundamental Hedged |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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