Correlation Between Ford and Pingtan Marine
Can any of the company-specific risk be diversified away by investing in both Ford and Pingtan Marine 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 Pingtan Marine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Pingtan Marine Enterprise, you can compare the effects of market volatilities on Ford and Pingtan Marine 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 Pingtan Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Pingtan Marine.
Diversification Opportunities for Ford and Pingtan Marine
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Pingtan is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Pingtan Marine Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pingtan Marine Enterprise 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 Pingtan Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pingtan Marine Enterprise has no effect on the direction of Ford i.e., Ford and Pingtan Marine go up and down completely randomly.
Pair Corralation between Ford and Pingtan Marine
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.21 times more return on investment than Pingtan Marine. However, Ford Motor is 4.71 times less risky than Pingtan Marine. It trades about 0.01 of its potential returns per unit of risk. Pingtan Marine Enterprise is currently generating about -0.08 per unit of risk. If you would invest 1,148 in Ford Motor on September 3, 2024 and sell it today you would lose (50.00) from holding Ford Motor or give up 4.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 12.32% |
| Values | Daily Returns |
Ford Motor vs. Pingtan Marine Enterprise
Performance |
| Timeline |
| Ford Motor |
| Pingtan Marine Enterprise |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and Pingtan Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Pingtan Marine
The main advantage of trading using opposite Ford and Pingtan Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Pingtan Marine 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 Pingtan Marine will offset losses from the drop in Pingtan Marine's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| Pingtan Marine vs. Vistra Energy Corp | Pingtan Marine vs. GE Vernova LLC | Pingtan Marine vs. Mid Atlantic Home Health | Pingtan Marine vs. Black Hills |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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