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 Inc is expected to under-perform the Ford Motor. In addition to that, Apple is 1.1 times more volatile than Ford Motor Company. It trades about -0.06 of its total potential returns per unit of risk. Ford Motor Company is currently generating about 0.19 per unit of volatility. If you would invest  1,216  in Ford Motor Company on November 11, 2017 and sell it today you would earn a total of  42  from holding Ford Motor Company or generate 3.45% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Apple and Ford Motor
-0.55

Parameters

Time Period1 Month [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification

Excellent 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

  
0 

Risk-Adjusted Performance

Over the last 30 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions.

Ford Motor

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.