Correlation Between Ford and STANLN
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By analyzing existing cross correlation between Ford Motor and STANLN 32 17 APR 25, you can compare the effects of market volatilities on Ford and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and STANLN.
Diversification Opportunities for Ford and STANLN
Weak diversification
The 3 months correlation between Ford and STANLN is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and STANLN 32 17 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 32 17 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 32 17 has no effect on the direction of Ford i.e., Ford and STANLN go up and down completely randomly.
Pair Corralation between Ford and STANLN
Taking into account the 90-day investment horizon Ford Motor is expected to generate 18.08 times more return on investment than STANLN. However, Ford is 18.08 times more volatile than STANLN 32 17 APR 25. It trades about 0.02 of its potential returns per unit of risk. STANLN 32 17 APR 25 is currently generating about 0.4 per unit of risk. If you would invest 966.00 in Ford Motor on September 14, 2024 and sell it today you would earn a total of 73.00 from holding Ford Motor or generate 7.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 19.7% |
| Values | Daily Returns |
Ford Motor vs. STANLN 32 17 APR 25
Performance |
| Timeline |
| Ford Motor |
| STANLN 32 17 |
Ford and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and STANLN
The main advantage of trading using opposite Ford and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.The idea behind Ford Motor and STANLN 32 17 APR 25 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.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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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