Correlation Between Ford and Songcheng Performance
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By analyzing existing cross correlation between Ford Motor and Songcheng Performance Develop, you can compare the effects of market volatilities on Ford and Songcheng Performance 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 Songcheng Performance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Songcheng Performance.
Diversification Opportunities for Ford and Songcheng Performance
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ford and Songcheng is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Songcheng Performance Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songcheng Performance 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 Songcheng Performance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songcheng Performance has no effect on the direction of Ford i.e., Ford and Songcheng Performance go up and down completely randomly.
Pair Corralation between Ford and Songcheng Performance
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.95 times more return on investment than Songcheng Performance. However, Ford Motor is 1.05 times less risky than Songcheng Performance. It trades about 0.23 of its potential returns per unit of risk. Songcheng Performance Develop is currently generating about -0.04 per unit of risk. If you would invest 1,015 in Ford Motor on September 1, 2024 and sell it today you would earn a total of 98.00 from holding Ford Motor or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ford Motor vs. Songcheng Performance Develop
Performance |
| Timeline |
| Ford Motor |
| Songcheng Performance |
Ford and Songcheng Performance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Songcheng Performance
The main advantage of trading using opposite Ford and Songcheng Performance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Songcheng Performance 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 Songcheng Performance will offset losses from the drop in Songcheng Performance's long position.The idea behind Ford Motor and Songcheng Performance Develop 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.| Songcheng Performance vs. Road Environment Technology | Songcheng Performance vs. Guangdong Jingyi Metal | Songcheng Performance vs. Jiangsu Broadcasting Cable | Songcheng Performance vs. Longjian Road Bridge |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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