Correlation Between Ford and Wahana Pronatural
Can any of the company-specific risk be diversified away by investing in both Ford and Wahana Pronatural at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ford and Wahana Pronatural into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Wahana Pronatural, you can compare the effects of market volatilities on Ford and Wahana Pronatural 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 Wahana Pronatural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Wahana Pronatural.
Diversification Opportunities for Ford and Wahana Pronatural
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and Wahana is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Wahana Pronatural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wahana Pronatural 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 Wahana Pronatural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wahana Pronatural has no effect on the direction of Ford i.e., Ford and Wahana Pronatural go up and down completely randomly.
Pair Corralation between Ford and Wahana Pronatural
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.54 times more return on investment than Wahana Pronatural. However, Ford Motor is 1.84 times less risky than Wahana Pronatural. It trades about 0.01 of its potential returns per unit of risk. Wahana Pronatural is currently generating about -0.03 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 | 95.76% |
| Values | Daily Returns |
Ford Motor vs. Wahana Pronatural
Performance |
| Timeline |
| Ford Motor |
| Wahana Pronatural |
Ford and Wahana Pronatural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Wahana Pronatural
The main advantage of trading using opposite Ford and Wahana Pronatural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Wahana Pronatural 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 Wahana Pronatural will offset losses from the drop in Wahana Pronatural's long position.| Ford vs. GreenPower Motor | Ford vs. ZEEKR Intelligent Technology | Ford vs. Volcon Inc | Ford vs. ECD Automotive Design |
| Wahana Pronatural vs. Wicaksana Overseas International | Wahana Pronatural vs. Millennium Pharmacon International | Wahana Pronatural vs. Tigaraksa Satria Tbk | Wahana Pronatural vs. Tempo Inti Media |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Transaction History View history of all your transactions and understand their impact on performance |