Correlation Between Ford and Amundi Stoxx
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By analyzing existing cross correlation between Ford Motor and Amundi Stoxx Europe, you can compare the effects of market volatilities on Ford and Amundi Stoxx 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 Amundi Stoxx. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Amundi Stoxx.
Diversification Opportunities for Ford and Amundi Stoxx
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Amundi is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Amundi Stoxx Europe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amundi Stoxx Europe 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 Amundi Stoxx. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amundi Stoxx Europe has no effect on the direction of Ford i.e., Ford and Amundi Stoxx go up and down completely randomly.
Pair Corralation between Ford and Amundi Stoxx
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the Amundi Stoxx. In addition to that, Ford is 2.74 times more volatile than Amundi Stoxx Europe. It trades about -0.18 of its total potential returns per unit of risk. Amundi Stoxx Europe is currently generating about 0.31 per unit of volatility. If you would invest 11,354 in Amundi Stoxx Europe on September 13, 2024 and sell it today you would earn a total of 462.00 from holding Amundi Stoxx Europe or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ford Motor vs. Amundi Stoxx Europe
Performance |
| Timeline |
| Ford Motor |
| Amundi Stoxx Europe |
Ford and Amundi Stoxx Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Amundi Stoxx
The main advantage of trading using opposite Ford and Amundi Stoxx positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Amundi Stoxx 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 Amundi Stoxx will offset losses from the drop in Amundi Stoxx's long position.The idea behind Ford Motor and Amundi Stoxx Europe 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.| Amundi Stoxx vs. UBS Fund Solutions | Amundi Stoxx vs. Xtrackers II | Amundi Stoxx vs. Xtrackers Nikkei 225 | Amundi Stoxx vs. iShares VII PLC |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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