Correlation Between Ford and BIOGEN
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By analyzing existing cross correlation between Ford Motor and BIOGEN INC, you can compare the effects of market volatilities on Ford and BIOGEN 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 BIOGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and BIOGEN.
Diversification Opportunities for Ford and BIOGEN
Significant diversification
The 3 months correlation between Ford and BIOGEN is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and BIOGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIOGEN INC 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 BIOGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIOGEN INC has no effect on the direction of Ford i.e., Ford and BIOGEN go up and down completely randomly.
Pair Corralation between Ford and BIOGEN
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.78 times more return on investment than BIOGEN. However, Ford is 1.78 times more volatile than BIOGEN INC. It trades about 0.22 of its potential returns per unit of risk. BIOGEN INC is currently generating about 0.03 per unit of risk. If you would invest 1,022 in Ford Motor on September 3, 2024 and sell it today you would earn a total of 91.00 from holding Ford Motor or generate 8.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Ford Motor vs. BIOGEN INC
Performance |
| Timeline |
| Ford Motor |
| BIOGEN INC |
Ford and BIOGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and BIOGEN
The main advantage of trading using opposite Ford and BIOGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, BIOGEN 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 BIOGEN will offset losses from the drop in BIOGEN's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| BIOGEN vs. Yuexiu Transport Infrastructure | BIOGEN vs. Patterson UTI Energy | BIOGEN vs. Hf Foods Group | BIOGEN vs. Beyond Meat |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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