This module allows you to analyze existing cross correlation between DOW and Ford Motor Company. You can compare the effects of market volatilities on DOW and Ford Motor 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 DOW with a short position of Ford Motor. See also your portfolio center. Please also check ongoing floating volatility patterns of DOW and Ford Motor.
|Time Horizon||30 Days Login to change|
DOW vs. Ford Motor Company
Given the investment horizon of 30 days, DOW is expected to under-perform the Ford Motor. But the index apears to be less risky and, when comparing its historical volatility, DOW is 1.39 times less risky than Ford Motor. The index trades about -0.04 of its potential returns per unit of risk. The Ford Motor Company is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,152 in Ford Motor Company on May 22, 2018 and sell it today you would earn a total of 35.00 from holding Ford Motor Company or generate 3.04% return on investment over 30 days.