Correlation Between Ford and Kim Vi
Can any of the company-specific risk be diversified away by investing in both Ford and Kim Vi 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 Kim Vi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Kim Vi Inox, you can compare the effects of market volatilities on Ford and Kim Vi 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 Kim Vi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Kim Vi.
Diversification Opportunities for Ford and Kim Vi
Pay attention - limited upside
The 3 months correlation between Ford and Kim is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Kim Vi Inox in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kim Vi Inox 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 Kim Vi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kim Vi Inox has no effect on the direction of Ford i.e., Ford and Kim Vi go up and down completely randomly.
Pair Corralation between Ford and Kim Vi
If you would invest (100.00) in Kim Vi Inox on September 3, 2024 and sell it today you would earn a total of 100.00 from holding Kim Vi Inox or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ford Motor vs. Kim Vi Inox
Performance |
Timeline |
Ford Motor |
Kim Vi Inox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and Kim Vi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ford and Kim Vi
The main advantage of trading using opposite Ford and Kim Vi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Kim Vi 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 Kim Vi will offset losses from the drop in Kim Vi's long position.Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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