Correlation Between Ford and WisdomTree
Can any of the company-specific risk be diversified away by investing in both Ford and WisdomTree 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 WisdomTree into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and WisdomTree, you can compare the effects of market volatilities on Ford and WisdomTree 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 WisdomTree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and WisdomTree.
Diversification Opportunities for Ford and WisdomTree
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and WisdomTree is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and WisdomTree in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree 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 WisdomTree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree has no effect on the direction of Ford i.e., Ford and WisdomTree go up and down completely randomly.
Pair Corralation between Ford and WisdomTree
If you would invest 1,314 in Ford Motor on October 7, 2025 and sell it today you would earn a total of 20.00 from holding Ford Motor or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ford Motor vs. WisdomTree
Performance |
| Timeline |
| Ford Motor |
| WisdomTree |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Ford and WisdomTree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and WisdomTree
The main advantage of trading using opposite Ford and WisdomTree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, WisdomTree 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 WisdomTree will offset losses from the drop in WisdomTree's long position.| Ford vs. Blue Bird Corp | Ford vs. Adient PLC | Ford vs. Goodyear Tire Rubber | Ford vs. Lotus Technology American |
| WisdomTree vs. ABLD | WisdomTree vs. Unusual Whales Subversive | WisdomTree vs. International Drawdown Managed | WisdomTree vs. Global X Data |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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