Correlation Between Ford and Sunindo Adipersada
Can any of the company-specific risk be diversified away by investing in both Ford and Sunindo Adipersada 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 Sunindo Adipersada into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Sunindo Adipersada Tbk, you can compare the effects of market volatilities on Ford and Sunindo Adipersada 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 Sunindo Adipersada. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Sunindo Adipersada.
Diversification Opportunities for Ford and Sunindo Adipersada
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ford and Sunindo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Sunindo Adipersada Tbk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunindo Adipersada Tbk 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 Sunindo Adipersada. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunindo Adipersada Tbk has no effect on the direction of Ford i.e., Ford and Sunindo Adipersada go up and down completely randomly.
Pair Corralation between Ford and Sunindo Adipersada
If you would invest 992.00 in Ford Motor on November 5, 2024 and sell it today you would earn a total of 16.00 from holding Ford Motor or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 84.21% |
| Values | Daily Returns |
Ford Motor vs. Sunindo Adipersada Tbk
Performance |
| Timeline |
| Ford Motor |
| Sunindo Adipersada Tbk |
Ford and Sunindo Adipersada Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Sunindo Adipersada
The main advantage of trading using opposite Ford and Sunindo Adipersada positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Sunindo Adipersada 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 Sunindo Adipersada will offset losses from the drop in Sunindo Adipersada's long position.The idea behind Ford Motor and Sunindo Adipersada Tbk 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.| Sunindo Adipersada vs. Guna Timur Raya | Sunindo Adipersada vs. Yelooo Integra Datanet | Sunindo Adipersada vs. Agro Yasa Lestari | Sunindo Adipersada vs. Sinergi Inti Plastindo |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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