Correlation Between Ford and GWOCN
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By analyzing existing cross correlation between Ford Motor and GWOCN 415 03 JUN 47, you can compare the effects of market volatilities on Ford and GWOCN 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 GWOCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and GWOCN.
Diversification Opportunities for Ford and GWOCN
Significant diversification
The 3 months correlation between Ford and GWOCN is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and GWOCN 415 03 JUN 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWOCN 415 03 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 GWOCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWOCN 415 03 has no effect on the direction of Ford i.e., Ford and GWOCN go up and down completely randomly.
Pair Corralation between Ford and GWOCN
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.55 times more return on investment than GWOCN. However, Ford is 1.55 times more volatile than GWOCN 415 03 JUN 47. It trades about 0.02 of its potential returns per unit of risk. GWOCN 415 03 JUN 47 is currently generating about -0.02 per unit of risk. If you would invest 1,029 in Ford Motor on September 3, 2024 and sell it today you would earn a total of 69.00 from holding Ford Motor or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.48% |
| Values | Daily Returns |
Ford Motor vs. GWOCN 415 03 JUN 47
Performance |
| Timeline |
| Ford Motor |
| GWOCN 415 03 |
Ford and GWOCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and GWOCN
The main advantage of trading using opposite Ford and GWOCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, GWOCN 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 GWOCN will offset losses from the drop in GWOCN's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
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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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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