Correlation Between Ford and CI Black
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By analyzing existing cross correlation between Ford Motor and CI Black Creek, you can compare the effects of market volatilities on Ford and CI Black 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 Black. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and CI Black.
Diversification Opportunities for Ford and CI Black
Good diversification
The 3 months correlation between Ford and 0P0000752C is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and CI Black Creek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CI Black Creek 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 Black. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CI Black Creek has no effect on the direction of Ford i.e., Ford and CI Black go up and down completely randomly.
Pair Corralation between Ford and CI Black
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.91 times more return on investment than CI Black. However, Ford is 2.91 times more volatile than CI Black Creek. It trades about 0.01 of its potential returns per unit of risk. CI Black Creek 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 Against |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ford Motor vs. CI Black Creek
Performance |
| Timeline |
| Ford Motor |
| CI Black Creek |
Ford and CI Black Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and CI Black
The main advantage of trading using opposite Ford and CI Black positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, CI Black 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 Black will offset losses from the drop in CI Black's long position.The idea behind Ford Motor and CI Black Creek 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 Black vs. Starlight Multi Family Core | CI Black vs. Fidelity Tactical High | CI Black vs. TD Comfort Aggressive | CI Black vs. TD Comfort Balanced |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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