Correlation Between Ford and Saat Market
Can any of the company-specific risk be diversified away by investing in both Ford and Saat Market 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 Saat Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Saat Market Growth, you can compare the effects of market volatilities on Ford and Saat Market 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 Saat Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Saat Market.
Diversification Opportunities for Ford and Saat Market
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ford and Saat is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Saat Market Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saat Market Growth 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 Saat Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saat Market Growth has no effect on the direction of Ford i.e., Ford and Saat Market go up and down completely randomly.
Pair Corralation between Ford and Saat Market
Taking into account the 90-day investment horizon Ford is expected to generate 1.25 times less return on investment than Saat Market. In addition to that, Ford is 4.0 times more volatile than Saat Market Growth. It trades about 0.01 of its total potential returns per unit of risk. Saat Market Growth is currently generating about 0.05 per unit of volatility. If you would invest 1,132 in Saat Market Growth on September 3, 2024 and sell it today you would earn a total of 145.00 from holding Saat Market Growth or generate 12.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Saat Market Growth
Performance |
| Timeline |
| Ford Motor |
| Saat Market Growth |
Ford and Saat Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Saat Market
The main advantage of trading using opposite Ford and Saat Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Saat Market 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 Saat Market will offset losses from the drop in Saat Market's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| Saat Market vs. Asg Managed Futures | Saat Market vs. Tiaa Cref Inflation Linked Bond | Saat Market vs. Western Asset Inflation | Saat Market vs. Ab Bond Inflation |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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