Correlation Between Ford and Expat Macedonia
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and Expat Macedonia Mbi10, you can compare the effects of market volatilities on Ford and Expat Macedonia 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 Expat Macedonia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Expat Macedonia.
Diversification Opportunities for Ford and Expat Macedonia
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Expat is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Expat Macedonia Mbi10 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Expat Macedonia Mbi10 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 Expat Macedonia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Expat Macedonia Mbi10 has no effect on the direction of Ford i.e., Ford and Expat Macedonia go up and down completely randomly.
Pair Corralation between Ford and Expat Macedonia
Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.13 times more return on investment than Expat Macedonia. However, Ford is 2.13 times more volatile than Expat Macedonia Mbi10. It trades about 0.06 of its potential returns per unit of risk. Expat Macedonia Mbi10 is currently generating about -0.03 per unit of risk. If you would invest 971.00 in Ford Motor on December 27, 2024 and sell it today you would earn a total of 58.00 from holding Ford Motor or generate 5.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 96.77% |
Values | Daily Returns |
Ford Motor vs. Expat Macedonia Mbi10
Performance |
Timeline |
Ford Motor |
Expat Macedonia Mbi10 |
Ford and Expat Macedonia Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ford and Expat Macedonia
The main advantage of trading using opposite Ford and Expat Macedonia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Expat Macedonia 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 Expat Macedonia will offset losses from the drop in Expat Macedonia's long position.The idea behind Ford Motor and Expat Macedonia Mbi10 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.Expat Macedonia vs. Expat Czech PX | Expat Macedonia vs. Expat Croatia Crobex | Expat Macedonia vs. Expat Serbia Belex15 | Expat Macedonia vs. Expat Poland WIG20 |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |