Correlation Between Ford and DNB Norge
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By analyzing existing cross correlation between Ford Motor and DNB Norge Selektiv, you can compare the effects of market volatilities on Ford and DNB Norge 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 DNB Norge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and DNB Norge.
Diversification Opportunities for Ford and DNB Norge
Weak diversification
The 3 months correlation between Ford and DNB is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and DNB Norge Selektiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DNB Norge Selektiv 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 DNB Norge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DNB Norge Selektiv has no effect on the direction of Ford i.e., Ford and DNB Norge go up and down completely randomly.
Pair Corralation between Ford and DNB Norge
Taking into account the 90-day investment horizon Ford is expected to generate 2.02 times less return on investment than DNB Norge. In addition to that, Ford is 2.83 times more volatile than DNB Norge Selektiv. It trades about 0.01 of its total potential returns per unit of risk. DNB Norge Selektiv is currently generating about 0.05 per unit of volatility. If you would invest 150,248 in DNB Norge Selektiv on September 3, 2024 and sell it today you would earn a total of 18,588 from holding DNB Norge Selektiv or generate 12.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.36% |
| Values | Daily Returns |
Ford Motor vs. DNB Norge Selektiv
Performance |
| Timeline |
| Ford Motor |
| DNB Norge Selektiv |
Ford and DNB Norge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and DNB Norge
The main advantage of trading using opposite Ford and DNB Norge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, DNB Norge 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 DNB Norge will offset losses from the drop in DNB Norge's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Franklin Floating Rate | DNB Norge vs. Dalata Hotel Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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