Correlation Between Ford and Jiangsu Broadcasting
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By analyzing existing cross correlation between Ford Motor and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Ford and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Jiangsu Broadcasting.
Diversification Opportunities for Ford and Jiangsu Broadcasting
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ford and Jiangsu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Ford i.e., Ford and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Ford and Jiangsu Broadcasting
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.3 times more return on investment than Jiangsu Broadcasting. However, Ford is 1.3 times more volatile than Jiangsu Broadcasting Cable. It trades about 0.01 of its potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about -0.01 per unit of risk. If you would invest 1,080 in Ford Motor on August 31, 2024 and sell it today you would earn a total of 30.00 from holding Ford Motor or generate 2.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.45% |
| Values | Daily Returns |
Ford Motor vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Ford Motor |
| Jiangsu Broadcasting |
Ford and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Jiangsu Broadcasting
The main advantage of trading using opposite Ford and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.The idea behind Ford Motor and Jiangsu Broadcasting Cable 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.| Jiangsu Broadcasting vs. BYD Co Ltd | Jiangsu Broadcasting vs. Agricultural Bank of | Jiangsu Broadcasting vs. Industrial and Commercial | Jiangsu Broadcasting vs. China State Construction |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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