Correlation Between Ford and El Puerto
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By analyzing existing cross correlation between Ford Motor and El Puerto de, you can compare the effects of market volatilities on Ford and El Puerto 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 El Puerto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and El Puerto.
Diversification Opportunities for Ford and El Puerto
Very good diversification
The 3 months correlation between Ford and LIVEPOLC-1 is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and El Puerto de in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on El Puerto de 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 El Puerto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of El Puerto de has no effect on the direction of Ford i.e., Ford and El Puerto go up and down completely randomly.
Pair Corralation between Ford and El Puerto
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.39 times more return on investment than El Puerto. However, Ford is 1.39 times more volatile than El Puerto de. It trades about -0.01 of its potential returns per unit of risk. El Puerto de is currently generating about -0.12 per unit of risk. If you would invest 1,200 in Ford Motor on September 3, 2024 and sell it today you would lose (87.00) from holding Ford Motor or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.65% |
| Values | Daily Returns |
Ford Motor vs. El Puerto de
Performance |
| Timeline |
| Ford Motor |
| El Puerto de |
Ford and El Puerto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and El Puerto
The main advantage of trading using opposite Ford and El Puerto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, El Puerto 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 El Puerto will offset losses from the drop in El Puerto's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| El Puerto vs. Genworth Financial | El Puerto vs. DXC Technology | El Puerto vs. The Bank of | El Puerto vs. McEwen Mining |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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