Correlation Between Ford and Ubs All
Can any of the company-specific risk be diversified away by investing in both Ford and Ubs All at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ford and Ubs All into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Ubs All China, you can compare the effects of market volatilities on Ford and Ubs All 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 Ubs All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Ubs All.
Diversification Opportunities for Ford and Ubs All
Pay attention - limited upside
The 3 months correlation between Ford and Ubs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Ubs All China in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ubs All China 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 Ubs All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ubs All China has no effect on the direction of Ford i.e., Ford and Ubs All go up and down completely randomly.
Pair Corralation between Ford and Ubs All
If you would invest 1,008 in Ford Motor on September 2, 2024 and sell it today you would earn a total of 105.00 from holding Ford Motor or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Ubs All China
Performance |
| Timeline |
| Ford Motor |
| Ubs All China |
Ford and Ubs All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Ubs All
The main advantage of trading using opposite Ford and Ubs All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Ubs All 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 Ubs All will offset losses from the drop in Ubs All's long position.The idea behind Ford Motor and Ubs All China 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.| Ubs All vs. Pace Smallmedium Value | Ubs All vs. Pace International Equity | Ubs All vs. Pace International Equity | Ubs All vs. Ubs Allocation Fund |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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