Correlation Between Ford and Itthirit Nice
Can any of the company-specific risk be diversified away by investing in both Ford and Itthirit Nice 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 Itthirit Nice into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Itthirit Nice Corp, you can compare the effects of market volatilities on Ford and Itthirit Nice 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 Itthirit Nice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Itthirit Nice.
Diversification Opportunities for Ford and Itthirit Nice
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ford and Itthirit is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Itthirit Nice Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itthirit Nice Corp 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 Itthirit Nice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itthirit Nice Corp has no effect on the direction of Ford i.e., Ford and Itthirit Nice go up and down completely randomly.
Pair Corralation between Ford and Itthirit Nice
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.03 times more return on investment than Itthirit Nice. However, Ford is 1.03 times more volatile than Itthirit Nice Corp. It trades about -0.31 of its potential returns per unit of risk. Itthirit Nice Corp is currently generating about -0.48 per unit of risk. If you would invest 1,121 in Ford Motor on September 19, 2024 and sell it today you would lose (122.00) from holding Ford Motor or give up 10.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ford Motor vs. Itthirit Nice Corp
Performance |
| Timeline |
| Ford Motor |
| Itthirit Nice Corp |
Ford and Itthirit Nice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Itthirit Nice
The main advantage of trading using opposite Ford and Itthirit Nice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Itthirit Nice 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 Itthirit Nice will offset losses from the drop in Itthirit Nice's long position.The idea behind Ford Motor and Itthirit Nice Corp 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.| Itthirit Nice vs. 2S Metal Public | Itthirit Nice vs. Thai Coating Industrial | Itthirit Nice vs. CPR Gomu Industrial | Itthirit Nice vs. Bangkok Sheet Metal |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |