Correlation Between Ford and Fino Payments
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and Fino Payments Bank, you can compare the effects of market volatilities on Ford and Fino Payments 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 Fino Payments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Fino Payments.
Diversification Opportunities for Ford and Fino Payments
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Fino is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Fino Payments Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fino Payments Bank 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 Fino Payments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fino Payments Bank has no effect on the direction of Ford i.e., Ford and Fino Payments go up and down completely randomly.
Pair Corralation between Ford and Fino Payments
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.83 times more return on investment than Fino Payments. However, Ford Motor is 1.21 times less risky than Fino Payments. It trades about 0.23 of its potential returns per unit of risk. Fino Payments Bank is currently generating about -0.04 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 Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ford Motor vs. Fino Payments Bank
Performance |
| Timeline |
| Ford Motor |
| Fino Payments Bank |
Ford and Fino Payments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Fino Payments
The main advantage of trading using opposite Ford and Fino Payments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Fino Payments 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 Fino Payments will offset losses from the drop in Fino Payments' long position.The idea behind Ford Motor and Fino Payments Bank 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.| Fino Payments vs. Rajnandini Metal Limited | Fino Payments vs. Pilani Investment and | Fino Payments vs. Coffee Day Enterprises | Fino Payments vs. KNR Constructions Limited |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |