Correlation Analysis Between DOW and Ford Motor

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.
Horizon     30 Days    Login   to change
Symbolsvs

DOW  vs.  Ford Motor Company

 Performance (%) 
      Timeline 

Pair Volatility

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 1.83 times less risky than Ford Motor. The index trades about -0.08 of its potential returns per unit of risk. The Ford Motor Company is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  882.00  in Ford Motor Company on November 9, 2018 and sell it today you would earn a total of  0.00  from holding Ford Motor Company or generate 0.0% return on investment over 30 days.

Pair Corralation between DOW and Ford Motor

0.16
Time Period2 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

DOW diversification synergy

Average diversification

Overlapping area represents the amount of risk that can be diversified away by holding DOW and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and DOW 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 DOW are associated (or correlated) with Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of DOW i.e. DOW and Ford Motor go up and down completely randomly.
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Comparative Volatility

 Predicted Return Density 
      Returns 

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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1036.58

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