Correlation Between Ford and Clockwise Capital
Can any of the company-specific risk be diversified away by investing in both Ford and Clockwise Capital 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 Clockwise Capital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Clockwise Capital, you can compare the effects of market volatilities on Ford and Clockwise Capital 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 Clockwise Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Clockwise Capital.
Diversification Opportunities for Ford and Clockwise Capital
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ford and Clockwise is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Clockwise Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Clockwise Capital 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 Clockwise Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Clockwise Capital has no effect on the direction of Ford i.e., Ford and Clockwise Capital go up and down completely randomly.
Pair Corralation between Ford and Clockwise Capital
If you would invest 1,376 in Ford Motor on October 13, 2025 and sell it today you would earn a total of 44.00 from holding Ford Motor or generate 3.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 5.0% |
| Values | Daily Returns |
Ford Motor vs. Clockwise Capital
Performance |
| Timeline |
| Ford Motor |
| Clockwise Capital |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Ford and Clockwise Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Clockwise Capital
The main advantage of trading using opposite Ford and Clockwise Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Clockwise Capital 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 Clockwise Capital will offset losses from the drop in Clockwise Capital's long position.The idea behind Ford Motor and Clockwise Capital 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.| Clockwise Capital vs. FT Vest Equity | Clockwise Capital vs. Zillow Group Class | Clockwise Capital vs. Northern Lights | Clockwise Capital vs. VanEck Vectors Moodys |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |