Correlation Between Ford and Takung Art
Can any of the company-specific risk be diversified away by investing in both Ford and Takung Art 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 Takung Art into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Takung Art Co, you can compare the effects of market volatilities on Ford and Takung Art 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 Takung Art. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Takung Art.
Diversification Opportunities for Ford and Takung Art
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and Takung is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Takung Art Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Takung Art 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 Takung Art. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Takung Art has no effect on the direction of Ford i.e., Ford and Takung Art go up and down completely randomly.
Pair Corralation between Ford and Takung Art
If you would invest (100.00) in Takung Art Co on November 8, 2024 and sell it today you would earn a total of 100.00 from holding Takung Art Co or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ford Motor vs. Takung Art Co
Performance |
| Timeline |
| Ford Motor |
| Takung Art |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and Takung Art Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Takung Art
The main advantage of trading using opposite Ford and Takung Art positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Takung Art 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 Takung Art will offset losses from the drop in Takung Art's long position.The idea behind Ford Motor and Takung Art Co 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.| Takung Art vs. Oriental Culture Holding | Takung Art vs. Dolphin Entertainment | Takung Art vs. Hall of Fame | Takung Art vs. Wisekey International Holding |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |