Correlation Between Ford and Soochow Suzhou
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By analyzing existing cross correlation between Ford Motor and Soochow Suzhou Industrial, you can compare the effects of market volatilities on Ford and Soochow Suzhou 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 Soochow Suzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Soochow Suzhou.
Diversification Opportunities for Ford and Soochow Suzhou
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ford and Soochow is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Soochow Suzhou Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soochow Suzhou Industrial 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 Soochow Suzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soochow Suzhou Industrial has no effect on the direction of Ford i.e., Ford and Soochow Suzhou go up and down completely randomly.
Pair Corralation between Ford and Soochow Suzhou
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.14 times more return on investment than Soochow Suzhou. However, Ford is 2.14 times more volatile than Soochow Suzhou Industrial. It trades about 0.0 of its potential returns per unit of risk. Soochow Suzhou Industrial is currently generating about -0.04 per unit of risk. If you would invest 1,083 in Ford Motor on October 14, 2024 and sell it today you would lose (118.00) from holding Ford Motor or give up 10.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.37% |
| Values | Daily Returns |
Ford Motor vs. Soochow Suzhou Industrial
Performance |
| Timeline |
| Ford Motor |
| Soochow Suzhou Industrial |
Ford and Soochow Suzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Soochow Suzhou
The main advantage of trading using opposite Ford and Soochow Suzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Soochow Suzhou 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 Soochow Suzhou will offset losses from the drop in Soochow Suzhou's long position.The idea behind Ford Motor and Soochow Suzhou Industrial 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.| Soochow Suzhou vs. Servyou Software Group | Soochow Suzhou vs. Holitech Technology Co | Soochow Suzhou vs. Hangzhou Pinming Software | Soochow Suzhou vs. Bingo Software 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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