Correlation Between Ford and Juewei Food
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By analyzing existing cross correlation between Ford Motor and Juewei Food Co, you can compare the effects of market volatilities on Ford and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Juewei Food.
Diversification Opportunities for Ford and Juewei Food
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ford and Juewei is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Ford i.e., Ford and Juewei Food go up and down completely randomly.
Pair Corralation between Ford and Juewei Food
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.79 times more return on investment than Juewei Food. However, Ford Motor is 1.26 times less risky than Juewei Food. It trades about 0.0 of its potential returns per unit of risk. Juewei Food Co is currently generating about -0.05 per unit of risk. If you would invest 1,236 in Ford Motor on August 31, 2024 and sell it today you would lose (123.00) from holding Ford Motor or give up 9.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.99% |
| Values | Daily Returns |
Ford Motor vs. Juewei Food Co
Performance |
| Timeline |
| Ford Motor |
| Juewei Food |
Ford and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Juewei Food
The main advantage of trading using opposite Ford and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.The idea behind Ford Motor and Juewei Food 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.| Juewei Food vs. Lutian Machinery Co | Juewei Food vs. PetroChina Co Ltd | Juewei Food vs. Bank of China | Juewei Food vs. Gansu Jiu Steel |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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