Correlation Between Ford and NIBC Holding
Can any of the company-specific risk be diversified away by investing in both Ford and NIBC Holding 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 NIBC Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and NIBC Holding NV, you can compare the effects of market volatilities on Ford and NIBC Holding 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 NIBC Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and NIBC Holding.
Diversification Opportunities for Ford and NIBC Holding
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and NIBC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and NIBC Holding NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIBC Holding NV 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 NIBC Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIBC Holding NV has no effect on the direction of Ford i.e., Ford and NIBC Holding go up and down completely randomly.
Pair Corralation between Ford and NIBC Holding
If you would invest 1,135 in Ford Motor on August 26, 2024 and sell it today you would lose (17.00) from holding Ford Motor or give up 1.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ford Motor vs. NIBC Holding NV
Performance |
| Timeline |
| Ford Motor |
| NIBC Holding NV |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and NIBC Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and NIBC Holding
The main advantage of trading using opposite Ford and NIBC Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, NIBC Holding 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 NIBC Holding will offset losses from the drop in NIBC Holding's long position.The idea behind Ford Motor and NIBC Holding NV 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.| NIBC Holding vs. Universal Music Group | NIBC Holding vs. SBM Offshore NV | NIBC Holding vs. Tetragon Financial Group | NIBC Holding vs. Accsys Technologies |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |