Correlation Between Ford and Migdal Mutual
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By analyzing existing cross correlation between Ford Motor and Migdal Mutual Funds, you can compare the effects of market volatilities on Ford and Migdal Mutual 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 Migdal Mutual. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Migdal Mutual.
Diversification Opportunities for Ford and Migdal Mutual
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Migdal is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Migdal Mutual Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Migdal Mutual Funds 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 Migdal Mutual. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Migdal Mutual Funds has no effect on the direction of Ford i.e., Ford and Migdal Mutual go up and down completely randomly.
Pair Corralation between Ford and Migdal Mutual
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.72 times more return on investment than Migdal Mutual. However, Ford is 2.72 times more volatile than Migdal Mutual Funds. It trades about 0.04 of its potential returns per unit of risk. Migdal Mutual Funds is currently generating about -0.38 per unit of risk. If you would invest 1,122 in Ford Motor on August 28, 2024 and sell it today you would earn a total of 18.00 from holding Ford Motor or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
Ford Motor vs. Migdal Mutual Funds
Performance |
| Timeline |
| Ford Motor |
| Migdal Mutual Funds |
Ford and Migdal Mutual Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Migdal Mutual
The main advantage of trading using opposite Ford and Migdal Mutual positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Migdal Mutual 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 Migdal Mutual will offset losses from the drop in Migdal Mutual's long position.The idea behind Ford Motor and Migdal Mutual Funds 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.| Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds | Migdal Mutual vs. Migdal Mutual Funds |
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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