Correlation Between Ford and Anaconda Mining
Can any of the company-specific risk be diversified away by investing in both Ford and Anaconda Mining 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 Anaconda Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Anaconda Mining, you can compare the effects of market volatilities on Ford and Anaconda Mining 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 Anaconda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Anaconda Mining.
Diversification Opportunities for Ford and Anaconda Mining
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and Anaconda is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Anaconda Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anaconda Mining 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 Anaconda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anaconda Mining has no effect on the direction of Ford i.e., Ford and Anaconda Mining go up and down completely randomly.
Pair Corralation between Ford and Anaconda Mining
If you would invest 957.00 in Ford Motor on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Ford Motor or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ford Motor vs. Anaconda Mining
Performance |
| Timeline |
| Ford Motor |
| Anaconda Mining |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and Anaconda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Anaconda Mining
The main advantage of trading using opposite Ford and Anaconda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Anaconda Mining 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 Anaconda Mining will offset losses from the drop in Anaconda Mining's long position.The idea behind Ford Motor and Anaconda Mining 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.| Anaconda Mining vs. Bip Investment Corp | Anaconda Mining vs. Maple Peak Investments | Anaconda Mining vs. Electra Battery Materials | Anaconda Mining vs. Canaf Investments |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |