Correlation Between Ford and FUTURETECH
Can any of the company-specific risk be diversified away by investing in both Ford and FUTURETECH 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 FUTURETECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and FUTURETECH II ACQUISITION, you can compare the effects of market volatilities on Ford and FUTURETECH 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 FUTURETECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and FUTURETECH.
Diversification Opportunities for Ford and FUTURETECH
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ford and FUTURETECH is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and FUTURETECH II ACQUISITION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FUTURETECH II ACQUISITION 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 FUTURETECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FUTURETECH II ACQUISITION has no effect on the direction of Ford i.e., Ford and FUTURETECH go up and down completely randomly.
Pair Corralation between Ford and FUTURETECH
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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ford Motor vs. FUTURETECH II ACQUISITION
Performance |
| Timeline |
| Ford Motor |
| FUTURETECH II ACQUISITION |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and FUTURETECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and FUTURETECH
The main advantage of trading using opposite Ford and FUTURETECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, FUTURETECH 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 FUTURETECH will offset losses from the drop in FUTURETECH's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| FUTURETECH vs. Alpha One | FUTURETECH vs. Manaris Corp | FUTURETECH vs. SCOR PK | FUTURETECH vs. Aquagold International |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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