Correlation Between Ford and Weihai Guangwei
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By analyzing existing cross correlation between Ford Motor and Weihai Guangwei Composites, you can compare the effects of market volatilities on Ford and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Weihai Guangwei.
Diversification Opportunities for Ford and Weihai Guangwei
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ford and Weihai is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Ford i.e., Ford and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Ford and Weihai Guangwei
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.91 times more return on investment than Weihai Guangwei. However, Ford Motor is 1.1 times less risky than Weihai Guangwei. It trades about 0.01 of its potential returns per unit of risk. Weihai Guangwei Composites is currently generating about -0.01 per unit of risk. If you would invest 1,148 in Ford Motor on September 3, 2024 and sell it today you would lose (35.00) from holding Ford Motor or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.36% |
| Values | Daily Returns |
Ford Motor vs. Weihai Guangwei Composites
Performance |
| Timeline |
| Ford Motor |
| Weihai Guangwei Comp |
Ford and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Weihai Guangwei
The main advantage of trading using opposite Ford and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| Weihai Guangwei vs. Shandong Homey Aquatic | Weihai Guangwei vs. Xinhua Winshare Publishing | Weihai Guangwei vs. Luolai Home Textile | Weihai Guangwei vs. Changjiang Publishing Media |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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