Correlation Between Ford and TAISEM
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By analyzing existing cross correlation between Ford Motor and TAISEM 3125 25 OCT 41, you can compare the effects of market volatilities on Ford and TAISEM 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 TAISEM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and TAISEM.
Diversification Opportunities for Ford and TAISEM
Very good diversification
The 3 months correlation between Ford and TAISEM is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and TAISEM 3125 25 OCT 41 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAISEM 3125 25 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 TAISEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAISEM 3125 25 has no effect on the direction of Ford i.e., Ford and TAISEM go up and down completely randomly.
Pair Corralation between Ford and TAISEM
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the TAISEM. In addition to that, Ford is 2.53 times more volatile than TAISEM 3125 25 OCT 41. It trades about -0.01 of its total potential returns per unit of risk. TAISEM 3125 25 OCT 41 is currently generating about 0.0 per unit of volatility. If you would invest 7,728 in TAISEM 3125 25 OCT 41 on September 3, 2024 and sell it today you would lose (10.00) from holding TAISEM 3125 25 OCT 41 or give up 0.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 63.01% |
| Values | Daily Returns |
Ford Motor vs. TAISEM 3125 25 OCT 41
Performance |
| Timeline |
| Ford Motor |
| TAISEM 3125 25 |
Ford and TAISEM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and TAISEM
The main advantage of trading using opposite Ford and TAISEM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, TAISEM 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 TAISEM will offset losses from the drop in TAISEM's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. Ford Motor |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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