Correlation Between Ford and Inderes Oyj
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By analyzing existing cross correlation between Ford Motor and Inderes Oyj, you can compare the effects of market volatilities on Ford and Inderes 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 Inderes Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Inderes Oyj.
Diversification Opportunities for Ford and Inderes Oyj
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ford and Inderes is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Inderes Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inderes Oyj 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 Inderes Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inderes Oyj has no effect on the direction of Ford i.e., Ford and Inderes Oyj go up and down completely randomly.
Pair Corralation between Ford and Inderes Oyj
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.13 times more return on investment than Inderes Oyj. However, Ford is 1.13 times more volatile than Inderes Oyj. It trades about 0.02 of its potential returns per unit of risk. Inderes Oyj is currently generating about 0.0 per unit of risk. If you would invest 957.00 in Ford Motor on September 12, 2024 and sell it today you would earn a total of 99.00 from holding Ford Motor or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Ford Motor vs. Inderes Oyj
Performance |
| Timeline |
| Ford Motor |
| Inderes Oyj |
Ford and Inderes Oyj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Inderes Oyj
The main advantage of trading using opposite Ford and Inderes Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Inderes 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 Inderes Oyj will offset losses from the drop in Inderes Oyj's long position.The idea behind Ford Motor and Inderes Oyj 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.| Inderes Oyj vs. United Bankers Oyj | Inderes Oyj vs. CapMan Oyj B | Inderes Oyj vs. HKFoods Oyj A | Inderes Oyj vs. KONE 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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