Correlation Between Ford and Van Eck
Can any of the company-specific risk be diversified away by investing in both Ford and Van Eck 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 Van Eck into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Van Eck, you can compare the effects of market volatilities on Ford and Van Eck 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 Van Eck. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Van Eck.
Diversification Opportunities for Ford and Van Eck
Pay attention - limited upside
The 3 months correlation between Ford and Van is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Van Eck in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Van Eck 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 Van Eck. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Van Eck has no effect on the direction of Ford i.e., Ford and Van Eck go up and down completely randomly.
Pair Corralation between Ford and Van Eck
If you would invest (100.00) in Van Eck on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Van Eck or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ford Motor vs. Van Eck
Performance |
| Timeline |
| Ford Motor |
| Van Eck |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and Van Eck Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Van Eck
The main advantage of trading using opposite Ford and Van Eck positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Van Eck 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 Van Eck will offset losses from the drop in Van Eck's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| Van Eck vs. Vanguard Total Stock | Van Eck vs. SPDR SP 500 | Van Eck vs. Vanguard Total Bond | Van Eck vs. Vanguard Value Index |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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