Correlation Between Ford and Hatton National
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By analyzing existing cross correlation between Ford Motor and Hatton National Bank, you can compare the effects of market volatilities on Ford and Hatton National 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 Hatton National. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Hatton National.
Diversification Opportunities for Ford and Hatton National
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and Hatton is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Hatton National Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hatton National 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 Hatton National. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hatton National Bank has no effect on the direction of Ford i.e., Ford and Hatton National go up and down completely randomly.
Pair Corralation between Ford and Hatton National
Taking into account the 90-day investment horizon Ford is expected to generate 4.62 times less return on investment than Hatton National. But when comparing it to its historical volatility, Ford Motor is 1.23 times less risky than Hatton National. It trades about 0.07 of its potential returns per unit of risk. Hatton National Bank is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 32,025 in Hatton National Bank on November 4, 2024 and sell it today you would earn a total of 3,200 from holding Hatton National Bank or generate 9.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ford Motor vs. Hatton National Bank
Performance |
| Timeline |
| Ford Motor |
| Hatton National Bank |
Ford and Hatton National Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Hatton National
The main advantage of trading using opposite Ford and Hatton National positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Hatton National 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 Hatton National will offset losses from the drop in Hatton National's long position.The idea behind Ford Motor and Hatton National 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.| Hatton National vs. Renuka Agri Foods | Hatton National vs. Asiri Surgical Hospital | Hatton National vs. RENUKA FOODS PLC | Hatton National vs. Convenience Foods PLC |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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