Correlation Between Ford and 49446RAY5
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By analyzing existing cross correlation between Ford Motor and KIM 225 01 DEC 31, you can compare the effects of market volatilities on Ford and 49446RAY5 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 49446RAY5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and 49446RAY5.
Diversification Opportunities for Ford and 49446RAY5
Very good diversification
The 3 months correlation between Ford and 49446RAY5 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and KIM 225 01 DEC 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIM 225 01 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 49446RAY5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIM 225 01 has no effect on the direction of Ford i.e., Ford and 49446RAY5 go up and down completely randomly.
Pair Corralation between Ford and 49446RAY5
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.65 times more return on investment than 49446RAY5. However, Ford is 2.65 times more volatile than KIM 225 01 DEC 31. It trades about 0.01 of its potential returns per unit of risk. KIM 225 01 DEC 31 is currently generating about 0.01 per unit of risk. If you would invest 1,148 in Ford Motor on September 3, 2024 and sell it today you would lose (35.00) from holding Ford Motor or give up 3.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.43% |
| Values | Daily Returns |
Ford Motor vs. KIM 225 01 DEC 31
Performance |
| Timeline |
| Ford Motor |
| KIM 225 01 |
Ford and 49446RAY5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and 49446RAY5
The main advantage of trading using opposite Ford and 49446RAY5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, 49446RAY5 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 49446RAY5 will offset losses from the drop in 49446RAY5'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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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