Correlation Between Ford and Holike
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and Holike, you can compare the effects of market volatilities on Ford and Holike 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 Holike. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Holike.
Diversification Opportunities for Ford and Holike
Weak diversification
The 3 months correlation between Ford and Holike is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Holike in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holike 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 Holike. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holike has no effect on the direction of Ford i.e., Ford and Holike go up and down completely randomly.
Pair Corralation between Ford and Holike
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.79 times more return on investment than Holike. However, Ford Motor is 1.26 times less risky than Holike. It trades about 0.03 of its potential returns per unit of risk. Holike is currently generating about 0.0 per unit of risk. If you would invest 1,011 in Ford Motor on September 2, 2024 and sell it today you would earn a total of 102.00 from holding Ford Motor or generate 10.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.97% |
| Values | Daily Returns |
Ford Motor vs. Holike
Performance |
| Timeline |
| Ford Motor |
| Holike |
Ford and Holike Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Holike
The main advantage of trading using opposite Ford and Holike positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Holike 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 Holike will offset losses from the drop in Holike's long position.The idea behind Ford Motor and Holike 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.| Holike vs. Kweichow Moutai Co | Holike vs. NAURA Technology Group | Holike vs. Zhejiang Orient Gene | Holike vs. APT Medical |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |