Correlation Between Ford and KERRY EXPRESS
Can any of the company-specific risk be diversified away by investing in both Ford and KERRY EXPRESS 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 KERRY EXPRESS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and KERRY EXPRESS, you can compare the effects of market volatilities on Ford and KERRY EXPRESS 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 KERRY EXPRESS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and KERRY EXPRESS.
Diversification Opportunities for Ford and KERRY EXPRESS
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and KERRY is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and KERRY EXPRESS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KERRY EXPRESS 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 KERRY EXPRESS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KERRY EXPRESS has no effect on the direction of Ford i.e., Ford and KERRY EXPRESS go up and down completely randomly.
Pair Corralation between Ford and KERRY EXPRESS
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.36 times more return on investment than KERRY EXPRESS. However, Ford Motor is 2.74 times less risky than KERRY EXPRESS. It trades about 0.02 of its potential returns per unit of risk. KERRY EXPRESS is currently generating about -0.06 per unit of risk. If you would invest 1,029 in Ford Motor on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Ford Motor or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.17% |
| Values | Daily Returns |
Ford Motor vs. KERRY EXPRESS
Performance |
| Timeline |
| Ford Motor |
| KERRY EXPRESS |
Ford and KERRY EXPRESS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and KERRY EXPRESS
The main advantage of trading using opposite Ford and KERRY EXPRESS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, KERRY EXPRESS 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 KERRY EXPRESS will offset losses from the drop in KERRY EXPRESS's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| KERRY EXPRESS vs. ABSOLUTE CLEAN ENERGY | KERRY EXPRESS vs. Mena Transport Public | KERRY EXPRESS vs. Ramkhamhaeng Hospital Public | KERRY EXPRESS vs. Sri panwa Hospitality |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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