Pair Correlation Between Apple and Ford Motor

This module allows you to analyze existing cross correlation between Apple Inc and Ford Motor Company. You can compare the effects of market volatilities on Apple 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 Apple with a short position of Ford Motor. See also your portfolio center. Please also check ongoing floating volatility patterns of Apple and Ford Motor.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Apple Inc  vs   Ford Motor Company
 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Apple is expected to generate 1.69 times less return on investment than Ford Motor. In addition to that, Apple is 1.08 times more volatile than Ford Motor Company. It trades about 0.09 of its total potential returns per unit of risk. Ford Motor Company is currently generating about 0.17 per unit of volatility. If you would invest  1,172  in Ford Motor Company on September 21, 2017 and sell it today you would earn a total of  38  from holding Ford Motor Company or generate 3.24% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Apple and Ford Motor
0.49

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and Apple 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 Apple Inc 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 Apple i.e. Apple and Ford Motor go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Apple Inc

  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.

Ford Motor

  
11 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.