Correlation Between Ford and Beta ETF
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and Beta ETF SP, you can compare the effects of market volatilities on Ford and Beta ETF 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 Beta ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Beta ETF.
Diversification Opportunities for Ford and Beta ETF
Very weak diversification
The 3 months correlation between Ford and Beta is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Beta ETF SP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beta ETF SP 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 Beta ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beta ETF SP has no effect on the direction of Ford i.e., Ford and Beta ETF go up and down completely randomly.
Pair Corralation between Ford and Beta ETF
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.75 times more return on investment than Beta ETF. However, Ford is 2.75 times more volatile than Beta ETF SP. It trades about 0.23 of its potential returns per unit of risk. Beta ETF SP is currently generating about 0.34 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Beta ETF SP
Performance |
| Timeline |
| Ford Motor |
| Beta ETF SP |
Ford and Beta ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Beta ETF
The main advantage of trading using opposite Ford and Beta ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Beta ETF 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 Beta ETF will offset losses from the drop in Beta ETF's long position.The idea behind Ford Motor and Beta ETF SP 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.| Beta ETF vs. Asseco Business Solutions | Beta ETF vs. Detalion Games SA | Beta ETF vs. Asseco South Eastern | Beta ETF vs. CFI Holding SA |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |