Correlation Between Ford and Beijing Scitop
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By analyzing existing cross correlation between Ford Motor and Beijing Scitop Bio, you can compare the effects of market volatilities on Ford and Beijing Scitop 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 Beijing Scitop. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Beijing Scitop.
Diversification Opportunities for Ford and Beijing Scitop
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ford and Beijing is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Beijing Scitop Bio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Scitop Bio 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 Beijing Scitop. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Scitop Bio has no effect on the direction of Ford i.e., Ford and Beijing Scitop go up and down completely randomly.
Pair Corralation between Ford and Beijing Scitop
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.79 times more return on investment than Beijing Scitop. However, Ford Motor is 1.27 times less risky than Beijing Scitop. It trades about 0.22 of its potential returns per unit of risk. Beijing Scitop Bio is currently generating about 0.13 per unit of risk. If you would invest 1,022 in Ford Motor on September 3, 2024 and sell it today you would earn a total of 91.00 from holding Ford Motor or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ford Motor vs. Beijing Scitop Bio
Performance |
| Timeline |
| Ford Motor |
| Beijing Scitop Bio |
Ford and Beijing Scitop Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Beijing Scitop
The main advantage of trading using opposite Ford and Beijing Scitop positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Beijing Scitop 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 Beijing Scitop will offset losses from the drop in Beijing Scitop's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| Beijing Scitop vs. Southchip Semiconductor Technology | Beijing Scitop vs. Anhui Huilong Agricultural | Beijing Scitop vs. Shaanxi Construction Machinery | Beijing Scitop vs. Will Semiconductor Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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