Correlation Between Ford and Banque Cantonale
Can any of the company-specific risk be diversified away by investing in both Ford and Banque Cantonale 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 Banque Cantonale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Banque Cantonale de, you can compare the effects of market volatilities on Ford and Banque Cantonale 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 Banque Cantonale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Banque Cantonale.
Diversification Opportunities for Ford and Banque Cantonale
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and Banque is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Banque Cantonale de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banque Cantonale 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 Banque Cantonale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banque Cantonale has no effect on the direction of Ford i.e., Ford and Banque Cantonale go up and down completely randomly.
Pair Corralation between Ford and Banque Cantonale
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the Banque Cantonale. In addition to that, Ford is 2.02 times more volatile than Banque Cantonale de. It trades about -0.07 of its total potential returns per unit of risk. Banque Cantonale de is currently generating about -0.01 per unit of volatility. If you would invest 26,000 in Banque Cantonale de on October 26, 2024 and sell it today you would lose (300.00) from holding Banque Cantonale de or give up 1.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.31% |
| Values | Daily Returns |
Ford Motor vs. Banque Cantonale de
Performance |
| Timeline |
| Ford Motor |
| Banque Cantonale |
Ford and Banque Cantonale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Banque Cantonale
The main advantage of trading using opposite Ford and Banque Cantonale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Banque Cantonale 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 Banque Cantonale will offset losses from the drop in Banque Cantonale's long position.The idea behind Ford Motor and Banque Cantonale de 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.| Banque Cantonale vs. Banque Cantonale | Banque Cantonale vs. Luzerner Kantonalbank AG | Banque Cantonale vs. Berner Kantonalbank AG | Banque Cantonale vs. Basler Kantonalbank |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |