Correlation Between Ford and NPF MICRO
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By analyzing existing cross correlation between Ford Motor and NPF MICRO FINANCE, you can compare the effects of market volatilities on Ford and NPF MICRO 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 NPF MICRO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and NPF MICRO.
Diversification Opportunities for Ford and NPF MICRO
Very good diversification
The 3 months correlation between Ford and NPF is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and NPF MICRO FINANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NPF MICRO FINANCE 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 NPF MICRO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NPF MICRO FINANCE has no effect on the direction of Ford i.e., Ford and NPF MICRO go up and down completely randomly.
Pair Corralation between Ford and NPF MICRO
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.79 times more return on investment than NPF MICRO. However, Ford Motor is 1.26 times less risky than NPF MICRO. It trades about 0.02 of its potential returns per unit of risk. NPF MICRO FINANCE is currently generating about -0.02 per unit of risk. If you would invest 1,029 in Ford Motor on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Ford Motor or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.38% |
| Values | Daily Returns |
Ford Motor vs. NPF MICRO FINANCE
Performance |
| Timeline |
| Ford Motor |
| NPF MICRO FINANCE |
Ford and NPF MICRO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and NPF MICRO
The main advantage of trading using opposite Ford and NPF MICRO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, NPF MICRO 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 NPF MICRO will offset losses from the drop in NPF MICRO's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| NPF MICRO vs. ASO SAVINGS AND | NPF MICRO vs. STERLING FINANCIAL HOLDINGS | NPF MICRO vs. SECURE ELECTRONIC TECHNOLOGY | NPF MICRO vs. ZENITH BANK PLC |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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