Correlation Between Ford and 15189XAX6
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By analyzing existing cross correlation between Ford Motor and CNP 3 01 MAR 32, you can compare the effects of market volatilities on Ford and 15189XAX6 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 15189XAX6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and 15189XAX6.
Diversification Opportunities for Ford and 15189XAX6
Good diversification
The 3 months correlation between Ford and 15189XAX6 is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and CNP 3 01 MAR 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 15189XAX6 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 15189XAX6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 15189XAX6 has no effect on the direction of Ford i.e., Ford and 15189XAX6 go up and down completely randomly.
Pair Corralation between Ford and 15189XAX6
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.52 times more return on investment than 15189XAX6. However, Ford is 1.52 times more volatile than CNP 3 01 MAR 32. It trades about 0.23 of its potential returns per unit of risk. CNP 3 01 MAR 32 is currently generating about -0.21 per unit of risk. If you would invest 1,015 in Ford Motor on September 1, 2024 and sell it today you would earn a total of 98.00 from holding Ford Motor or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 66.67% |
| Values | Daily Returns |
Ford Motor vs. CNP 3 01 MAR 32
Performance |
| Timeline |
| Ford Motor |
| 15189XAX6 |
Ford and 15189XAX6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and 15189XAX6
The main advantage of trading using opposite Ford and 15189XAX6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, 15189XAX6 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 15189XAX6 will offset losses from the drop in 15189XAX6's long position.The idea behind Ford Motor and CNP 3 01 MAR 32 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.| 15189XAX6 vs. ATT Inc | 15189XAX6 vs. Home Depot | 15189XAX6 vs. Cisco Systems | 15189XAX6 vs. Dupont De Nemours |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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