Correlation Between Ford and Hugo Boss
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By analyzing existing cross correlation between Ford Motor and Hugo Boss AG, you can compare the effects of market volatilities on Ford and Hugo Boss 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 Hugo Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Hugo Boss.
Diversification Opportunities for Ford and Hugo Boss
Good diversification
The 3 months correlation between Ford and Hugo is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Hugo Boss AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hugo Boss AG 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 Hugo Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hugo Boss AG has no effect on the direction of Ford i.e., Ford and Hugo Boss go up and down completely randomly.
Pair Corralation between Ford and Hugo Boss
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.07 times more return on investment than Hugo Boss. However, Ford is 1.07 times more volatile than Hugo Boss AG. It trades about 0.02 of its potential returns per unit of risk. Hugo Boss AG is currently generating about -0.01 per unit of risk. If you would invest 947.00 in Ford Motor on September 14, 2024 and sell it today you would earn a total of 94.00 from holding Ford Motor or generate 9.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.02% |
| Values | Daily Returns |
Ford Motor vs. Hugo Boss AG
Performance |
| Timeline |
| Ford Motor |
| Hugo Boss AG |
Ford and Hugo Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Hugo Boss
The main advantage of trading using opposite Ford and Hugo Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Hugo Boss 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 Hugo Boss will offset losses from the drop in Hugo Boss' long position.The idea behind Ford Motor and Hugo Boss AG 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.| Hugo Boss vs. Superior Plus Corp | Hugo Boss vs. SIVERS SEMICONDUCTORS AB | Hugo Boss vs. Norsk Hydro ASA | Hugo Boss vs. Reliance Steel Aluminum |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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