Correlation Between Ford and Astoria Financial
Can any of the company-specific risk be diversified away by investing in both Ford and Astoria Financial 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 Astoria Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Astoria Financial Corp, you can compare the effects of market volatilities on Ford and Astoria Financial 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 Astoria Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Astoria Financial.
Diversification Opportunities for Ford and Astoria Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and Astoria is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Astoria Financial Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astoria Financial 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 Astoria Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astoria Financial Corp has no effect on the direction of Ford i.e., Ford and Astoria Financial go up and down completely randomly.
Pair Corralation between Ford and Astoria Financial
If you would invest (100.00) in Astoria Financial Corp on September 2, 2024 and sell it today you would earn a total of 100.00 from holding Astoria Financial Corp or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ford Motor vs. Astoria Financial Corp
Performance |
| Timeline |
| Ford Motor |
| Astoria Financial Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and Astoria Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Astoria Financial
The main advantage of trading using opposite Ford and Astoria Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Astoria Financial 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 Astoria Financial will offset losses from the drop in Astoria Financial's long position.The idea behind Ford Motor and Astoria Financial 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.| Astoria Financial vs. Canlan Ice Sports | Astoria Financial vs. Ryanair Holdings PLC | Astoria Financial vs. Harmony Gold Mining | Astoria Financial vs. Saia Inc |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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