Correlation Between Ford and Fiplasto
Can any of the company-specific risk be diversified away by investing in both Ford and Fiplasto 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 Fiplasto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Fiplasto SA, you can compare the effects of market volatilities on Ford and Fiplasto 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 Fiplasto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Fiplasto.
Diversification Opportunities for Ford and Fiplasto
Pay attention - limited upside
The 3 months correlation between Ford and Fiplasto is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Fiplasto SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiplasto SA 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 Fiplasto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiplasto SA has no effect on the direction of Ford i.e., Ford and Fiplasto go up and down completely randomly.
Pair Corralation between Ford and Fiplasto
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.06 times more return on investment than Fiplasto. However, Ford is 1.06 times more volatile than Fiplasto SA. It trades about 0.18 of its potential returns per unit of risk. Fiplasto SA is currently generating about 0.14 per unit of risk. If you would invest 1,022 in Ford Motor on September 3, 2024 and sell it today you would earn a total of 76.00 from holding Ford Motor or generate 7.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Fiplasto SA
Performance |
| Timeline |
| Ford Motor |
| Fiplasto SA |
Ford and Fiplasto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Fiplasto
The main advantage of trading using opposite Ford and Fiplasto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Fiplasto 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 Fiplasto will offset losses from the drop in Fiplasto's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| Fiplasto vs. Longvie SA | Fiplasto vs. Edesa Holding SA | Fiplasto vs. American Express Co | Fiplasto vs. United States Steel |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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