Correlation Between Ford and HKFoods Oyj
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By analyzing existing cross correlation between Ford Motor and HKFoods Oyj A, you can compare the effects of market volatilities on Ford and HKFoods Oyj 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 HKFoods Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and HKFoods Oyj.
Diversification Opportunities for Ford and HKFoods Oyj
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ford and HKFoods is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and HKFoods Oyj A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HKFoods Oyj A 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 HKFoods Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HKFoods Oyj A has no effect on the direction of Ford i.e., Ford and HKFoods Oyj go up and down completely randomly.
Pair Corralation between Ford and HKFoods Oyj
Taking into account the 90-day investment horizon Ford is expected to generate 4.41 times less return on investment than HKFoods Oyj. But when comparing it to its historical volatility, Ford Motor is 1.16 times less risky than HKFoods Oyj. It trades about 0.01 of its potential returns per unit of risk. HKFoods Oyj A is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 70.00 in HKFoods Oyj A on August 27, 2024 and sell it today you would earn a total of 10.00 from holding HKFoods Oyj A or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 33.63% |
| Values | Daily Returns |
Ford Motor vs. HKFoods Oyj A
Performance |
| Timeline |
| Ford Motor |
| HKFoods Oyj A |
Ford and HKFoods Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and HKFoods Oyj
The main advantage of trading using opposite Ford and HKFoods Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, HKFoods Oyj 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 HKFoods Oyj will offset losses from the drop in HKFoods Oyj's long position.The idea behind Ford Motor and HKFoods Oyj A 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.| HKFoods Oyj vs. Kamux Suomi Oy | HKFoods Oyj vs. Harvia Oyj | HKFoods Oyj vs. Qt Group Oyj | HKFoods Oyj vs. Tecnotree Oyj |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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