Correlation Between Ford and Keeson Technology
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By analyzing existing cross correlation between Ford Motor and Keeson Technology Corp, you can compare the effects of market volatilities on Ford and Keeson Technology 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 Keeson Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Keeson Technology.
Diversification Opportunities for Ford and Keeson Technology
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ford and Keeson is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Keeson Technology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keeson Technology Corp 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 Keeson Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keeson Technology Corp has no effect on the direction of Ford i.e., Ford and Keeson Technology go up and down completely randomly.
Pair Corralation between Ford and Keeson Technology
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.97 times more return on investment than Keeson Technology. However, Ford Motor is 1.03 times less risky than Keeson Technology. It trades about 0.01 of its potential returns per unit of risk. Keeson Technology Corp is currently generating about -0.01 per unit of risk. If you would invest 1,138 in Ford Motor on September 1, 2024 and sell it today you would lose (25.00) from holding Ford Motor or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 96.36% |
| Values | Daily Returns |
Ford Motor vs. Keeson Technology Corp
Performance |
| Timeline |
| Ford Motor |
| Keeson Technology Corp |
Ford and Keeson Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Keeson Technology
The main advantage of trading using opposite Ford and Keeson Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Keeson Technology 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 Keeson Technology will offset losses from the drop in Keeson Technology's long position.The idea behind Ford Motor and Keeson Technology Corp 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.| Keeson Technology vs. Youyou Foods Co | Keeson Technology vs. HaiXin Foods Co | Keeson Technology vs. Nexchip Semiconductor Corp | Keeson Technology vs. Anhui Gujing Distillery |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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