Correlation Between Ford and 345397XL2
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and FORD MTR CR, you can compare the effects of market volatilities on Ford and 345397XL2 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 345397XL2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and 345397XL2.
Diversification Opportunities for Ford and 345397XL2
Very good diversification
The 3 months correlation between Ford and 345397XL2 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and FORD MTR CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORD MTR CR 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 345397XL2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORD MTR CR has no effect on the direction of Ford i.e., Ford and 345397XL2 go up and down completely randomly.
Pair Corralation between Ford and 345397XL2
Taking into account the 90-day investment horizon Ford Motor is expected to generate 5.15 times more return on investment than 345397XL2. However, Ford is 5.15 times more volatile than FORD MTR CR. It trades about 0.25 of its potential returns per unit of risk. FORD MTR CR is currently generating about -0.19 per unit of risk. If you would invest 1,008 in Ford Motor on September 2, 2024 and sell it today you would earn a total of 105.00 from holding Ford Motor or generate 10.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Ford Motor vs. FORD MTR CR
Performance |
| Timeline |
| Ford Motor |
| FORD MTR CR |
Ford and 345397XL2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and 345397XL2
The main advantage of trading using opposite Ford and 345397XL2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, 345397XL2 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 345397XL2 will offset losses from the drop in 345397XL2's long position.The idea behind Ford Motor and FORD MTR CR 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.| 345397XL2 vs. AEP TEX INC | 345397XL2 vs. US BANK NATIONAL | 345397XL2 vs. American Express | 345397XL2 vs. Chevron Corp |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |