Correlation Between Ford and TENK Old
Can any of the company-specific risk be diversified away by investing in both Ford and TENK Old 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 TENK Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and TENK Old, you can compare the effects of market volatilities on Ford and TENK Old 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 TENK Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and TENK Old.
Diversification Opportunities for Ford and TENK Old
Pay attention - limited upside
The 3 months correlation between Ford and TENK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and TENK Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TENK Old 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 TENK Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TENK Old has no effect on the direction of Ford i.e., Ford and TENK Old go up and down completely randomly.
Pair Corralation between Ford and TENK Old
If you would invest 965.00 in Ford Motor on December 17, 2024 and sell it today you would earn a total of 8.00 from holding Ford Motor or generate 0.83% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Ford Motor vs. TENK Old
Performance |
Timeline |
Ford Motor |
TENK Old |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Ford and TENK Old Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ford and TENK Old
The main advantage of trading using opposite Ford and TENK Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, TENK Old 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 TENK Old will offset losses from the drop in TENK Old's long position.The idea behind Ford Motor and TENK Old 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.TENK Old vs. Embrace Change Acquisition | TENK Old vs. Bannix Acquisition Corp | TENK Old vs. Global Blockchain Acquisition | TENK Old vs. TransAKT |
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.
Other Complementary Tools
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |