Correlation Between Ford and Nordea Invest
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and Nordea Invest Global, you can compare the effects of market volatilities on Ford and Nordea Invest 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 Nordea Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Nordea Invest.
Diversification Opportunities for Ford and Nordea Invest
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ford and Nordea is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Nordea Invest Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordea Invest Global 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 Nordea Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordea Invest Global has no effect on the direction of Ford i.e., Ford and Nordea Invest go up and down completely randomly.
Pair Corralation between Ford and Nordea Invest
Taking into account the 90-day investment horizon Ford is expected to generate 1.67 times less return on investment than Nordea Invest. In addition to that, Ford is 1.98 times more volatile than Nordea Invest Global. It trades about 0.01 of its total potential returns per unit of risk. Nordea Invest Global is currently generating about 0.05 per unit of volatility. If you would invest 3,738 in Nordea Invest Global on September 19, 2024 and sell it today you would earn a total of 736.00 from holding Nordea Invest Global or generate 19.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.21% |
| Values | Daily Returns |
Ford Motor vs. Nordea Invest Global
Performance |
| Timeline |
| Ford Motor |
| Nordea Invest Global |
Ford and Nordea Invest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Nordea Invest
The main advantage of trading using opposite Ford and Nordea Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Nordea Invest 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 Nordea Invest will offset losses from the drop in Nordea Invest's long position.The idea behind Ford Motor and Nordea Invest Global 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.| Nordea Invest vs. Scandinavian Medical Solutions | Nordea Invest vs. Cessatech AS | Nordea Invest vs. Ringkjoebing Landbobank AS | Nordea Invest vs. PARKEN Sport Entertainment |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |