Correlation Between Ford and Camel Group
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and Camel Group Co, you can compare the effects of market volatilities on Ford and Camel Group 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 Camel Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Camel Group.
Diversification Opportunities for Ford and Camel Group
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ford and Camel is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Camel Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camel Group 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 Camel Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camel Group has no effect on the direction of Ford i.e., Ford and Camel Group go up and down completely randomly.
Pair Corralation between Ford and Camel Group
Taking into account the 90-day investment horizon Ford is expected to generate 1.13 times less return on investment than Camel Group. In addition to that, Ford is 1.64 times more volatile than Camel Group Co. It trades about 0.04 of its total potential returns per unit of risk. Camel Group Co is currently generating about 0.08 per unit of volatility. If you would invest 868.00 in Camel Group Co on August 28, 2024 and sell it today you would earn a total of 21.00 from holding Camel Group Co or generate 2.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Camel Group Co
Performance |
| Timeline |
| Ford Motor |
| Camel Group |
Ford and Camel Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Camel Group
The main advantage of trading using opposite Ford and Camel Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Camel Group 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 Camel Group will offset losses from the drop in Camel Group's long position.The idea behind Ford Motor and Camel Group Co 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.| Camel Group vs. Xiamen Goldenhome Co | Camel Group vs. Nanjing Putian Telecommunications | Camel Group vs. Fiberhome Telecommunication Technologies | Camel Group vs. Nanxing Furniture Machinery |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |