Correlation Between Ford and Aplisens
Can any of the company-specific risk be diversified away by investing in both Ford and Aplisens 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 Aplisens into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Aplisens SA, you can compare the effects of market volatilities on Ford and Aplisens 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 Aplisens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Aplisens.
Diversification Opportunities for Ford and Aplisens
Very good diversification
The 3 months correlation between Ford and Aplisens is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Aplisens SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aplisens SA 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 Aplisens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aplisens SA has no effect on the direction of Ford i.e., Ford and Aplisens go up and down completely randomly.
Pair Corralation between Ford and Aplisens
Taking into account the 90-day investment horizon Ford is expected to generate 4.3 times less return on investment than Aplisens. In addition to that, Ford is 1.17 times more volatile than Aplisens SA. It trades about 0.01 of its total potential returns per unit of risk. Aplisens SA is currently generating about 0.05 per unit of volatility. If you would invest 1,307 in Aplisens SA on September 3, 2024 and sell it today you would earn a total of 543.00 from holding Aplisens SA or generate 41.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Aplisens SA
Performance |
| Timeline |
| Ford Motor |
| Aplisens SA |
Ford and Aplisens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Aplisens
The main advantage of trading using opposite Ford and Aplisens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Aplisens 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 Aplisens will offset losses from the drop in Aplisens' long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| Aplisens vs. LSI Software SA | Aplisens vs. Biztech Konsulting SA | Aplisens vs. Immobile | Aplisens vs. Play2Chill SA |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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