Correlation Between Ford and Guangdong Xiongsu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Ford Motor and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Ford and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Guangdong Xiongsu.
Diversification Opportunities for Ford and Guangdong Xiongsu
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ford and Guangdong is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Ford i.e., Ford and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Ford and Guangdong Xiongsu
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the Guangdong Xiongsu. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor is 1.85 times less risky than Guangdong Xiongsu. The stock trades about -0.5 of its potential returns per unit of risk. The Guangdong Xiongsu Technology is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 747.00 in Guangdong Xiongsu Technology on September 24, 2024 and sell it today you would lose (8.00) from holding Guangdong Xiongsu Technology or give up 1.07% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.24% |
Values | Daily Returns |
Ford Motor vs. Guangdong Xiongsu Technology
Performance |
Timeline |
Ford Motor |
Guangdong Xiongsu |
Ford and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ford and Guangdong Xiongsu
The main advantage of trading using opposite Ford and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.The idea behind Ford Motor and Guangdong Xiongsu Technology 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.Guangdong Xiongsu vs. Kweichow Moutai Co | Guangdong Xiongsu vs. Contemporary Amperex Technology | Guangdong Xiongsu vs. G bits Network Technology | Guangdong Xiongsu vs. BYD Co Ltd |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |