Correlation Between Ford and JS Global
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By analyzing existing cross correlation between Ford Motor and JS Global Banking, you can compare the effects of market volatilities on Ford and JS Global 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 JS Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and JS Global.
Diversification Opportunities for Ford and JS Global
Good diversification
The 3 months correlation between Ford and JSGBETF is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and JS Global Banking in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JS Global Banking 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 JS Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JS Global Banking has no effect on the direction of Ford i.e., Ford and JS Global go up and down completely randomly.
Pair Corralation between Ford and JS Global
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.74 times more return on investment than JS Global. However, Ford Motor is 1.36 times less risky than JS Global. It trades about -0.02 of its potential returns per unit of risk. JS Global Banking is currently generating about -0.05 per unit of risk. If you would invest 959.00 in Ford Motor on November 23, 2024 and sell it today you would lose (20.00) from holding Ford Motor or give up 2.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. JS Global Banking
Performance |
| Timeline |
| Ford Motor |
| JS Global Banking |
Ford and JS Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and JS Global
The main advantage of trading using opposite Ford and JS Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, JS Global 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 JS Global will offset losses from the drop in JS Global's long position.The idea behind Ford Motor and JS Global Banking 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.| JS Global vs. Air Link Communication | ||
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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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