Correlation Between Ford and PF Atlantic
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and PF Atlantic Petroleum, you can compare the effects of market volatilities on Ford and PF Atlantic 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 PF Atlantic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and PF Atlantic.
Diversification Opportunities for Ford and PF Atlantic
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and ATLA-DKK is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and PF Atlantic Petroleum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PF Atlantic Petroleum 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 PF Atlantic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PF Atlantic Petroleum has no effect on the direction of Ford i.e., Ford and PF Atlantic go up and down completely randomly.
Pair Corralation between Ford and PF Atlantic
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.42 times more return on investment than PF Atlantic. However, Ford Motor is 2.35 times less risky than PF Atlantic. It trades about 0.23 of its potential returns per unit of risk. PF Atlantic Petroleum is currently generating about -0.12 per unit of risk. If you would invest 1,015 in Ford Motor on September 1, 2024 and sell it today you would earn a total of 98.00 from holding Ford Motor or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ford Motor vs. PF Atlantic Petroleum
Performance |
| Timeline |
| Ford Motor |
| PF Atlantic Petroleum |
Ford and PF Atlantic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and PF Atlantic
The main advantage of trading using opposite Ford and PF Atlantic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, PF Atlantic 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 PF Atlantic will offset losses from the drop in PF Atlantic's long position.The idea behind Ford Motor and PF Atlantic Petroleum 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.| PF Atlantic vs. BioPorto | PF Atlantic vs. cBrain AS | PF Atlantic vs. Orphazyme AS | PF Atlantic vs. TORM 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |