Correlation Between Ford and DKINMAKK
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By analyzing existing cross correlation between Ford Motor and Investeringsforeningen Danske Invest, you can compare the effects of market volatilities on Ford and DKINMAKK 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 DKINMAKK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and DKINMAKK.
Diversification Opportunities for Ford and DKINMAKK
Average diversification
The 3 months correlation between Ford and DKINMAKK is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Investeringsforeningen Danske in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Investeringsforeningen 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 DKINMAKK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Investeringsforeningen has no effect on the direction of Ford i.e., Ford and DKINMAKK go up and down completely randomly.
Pair Corralation between Ford and DKINMAKK
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the DKINMAKK. In addition to that, Ford is 2.11 times more volatile than Investeringsforeningen Danske Invest. It trades about -0.21 of its total potential returns per unit of risk. Investeringsforeningen Danske Invest is currently generating about -0.06 per unit of volatility. If you would invest 37,670 in Investeringsforeningen Danske Invest on September 12, 2024 and sell it today you would lose (420.00) from holding Investeringsforeningen Danske Invest or give up 1.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ford Motor vs. Investeringsforeningen Danske
Performance |
| Timeline |
| Ford Motor |
| Investeringsforeningen |
Ford and DKINMAKK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and DKINMAKK
The main advantage of trading using opposite Ford and DKINMAKK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, DKINMAKK 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 DKINMAKK will offset losses from the drop in DKINMAKK's long position.The idea behind Ford Motor and Investeringsforeningen Danske Invest 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.| DKINMAKK vs. Ringkjoebing Landbobank AS | DKINMAKK vs. Sydbank AS | DKINMAKK vs. Strategic Investments AS | DKINMAKK vs. Vestjysk Bank AS |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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