Correlation Between Ford and EDPPL
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By analyzing existing cross correlation between Ford Motor and EDPPL 171 24 JAN 28, you can compare the effects of market volatilities on Ford and EDPPL 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 EDPPL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and EDPPL.
Diversification Opportunities for Ford and EDPPL
Very good diversification
The 3 months correlation between Ford and EDPPL is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and EDPPL 171 24 JAN 28 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDPPL 171 24 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 EDPPL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDPPL 171 24 has no effect on the direction of Ford i.e., Ford and EDPPL go up and down completely randomly.
Pair Corralation between Ford and EDPPL
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.96 times more return on investment than EDPPL. However, Ford is 2.96 times more volatile than EDPPL 171 24 JAN 28. It trades about -0.01 of its potential returns per unit of risk. EDPPL 171 24 JAN 28 is currently generating about -0.05 per unit of risk. If you would invest 1,200 in Ford Motor on September 3, 2024 and sell it today you would lose (87.00) from holding Ford Motor or give up 7.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 65.07% |
| Values | Daily Returns |
Ford Motor vs. EDPPL 171 24 JAN 28
Performance |
| Timeline |
| Ford Motor |
| EDPPL 171 24 |
Ford and EDPPL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and EDPPL
The main advantage of trading using opposite Ford and EDPPL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, EDPPL 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 EDPPL will offset losses from the drop in EDPPL's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
| EDPPL vs. Air Products and | EDPPL vs. Luxfer Holdings PLC | EDPPL vs. Grocery Outlet Holding | EDPPL vs. Mativ Holdings |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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