Correlation Between Ford and Sabina Public
Can any of the company-specific risk be diversified away by investing in both Ford and Sabina Public 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 Sabina Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Sabina Public, you can compare the effects of market volatilities on Ford and Sabina Public 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 Sabina Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Sabina Public.
Diversification Opportunities for Ford and Sabina Public
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Sabina is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Sabina Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sabina Public 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 Sabina Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sabina Public has no effect on the direction of Ford i.e., Ford and Sabina Public go up and down completely randomly.
Pair Corralation between Ford and Sabina Public
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.04 times more return on investment than Sabina Public. However, Ford is 2.04 times more volatile than Sabina Public. It trades about 0.0 of its potential returns per unit of risk. Sabina Public is currently generating about -0.14 per unit of risk. If you would invest 1,048 in Ford Motor on September 12, 2024 and sell it today you would lose (7.00) from holding Ford Motor or give up 0.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
Ford Motor vs. Sabina Public
Performance |
| Timeline |
| Ford Motor |
| Sabina Public |
Ford and Sabina Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Sabina Public
The main advantage of trading using opposite Ford and Sabina Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Sabina Public 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 Sabina Public will offset losses from the drop in Sabina Public's long position.The idea behind Ford Motor and Sabina Public 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.| Sabina Public vs. Hwa Fong Rubber | Sabina Public vs. AAPICO Hitech Public | Sabina Public vs. Haad Thip Public | Sabina Public vs. Italian Thai Development Public |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |