Correlation Analysis Between DAIMLER AG and Ford Motor

Analyzing existing cross correlation between DAIMLER AG and Ford Motor Company. You can compare the effects of market volatilities on DAIMLER AG 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 DAIMLER AG with a short position of Ford Motor. See also your portfolio center. Please also check ongoing floating volatility patterns of DAIMLER AG and Ford Motor.
Horizon     30 Days    Login   to change
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Comparative Performance

DAIMLER AG  
00

Risk-Adjusted Performance

Over the last 30 days DAIMLER AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in February 2020. The ongoing tumult may also be a sign of longer-term up-swing for the firm shareholders.
Ford Motor  
44

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Ford Motor is not utilizing all of its potentials. The late stock price tumult, may contribute to shorter-term losses for the shareholders.

DAIMLER AG and Ford Motor Volatility Contrast

 Predicted Return Density 
    
  Returns 

DAIMLER AG  vs.  Ford Motor Company

 Performance (%) 
    
  Timeline 

Pair Volatility

Assuming 30 trading days horizon, DAIMLER AG is expected to under-perform the Ford Motor. In addition to that, DAIMLER AG is 1.9 times more volatile than Ford Motor Company. It trades about -0.16 of its total potential returns per unit of risk. Ford Motor Company is currently generating about 0.07 per unit of volatility. If you would invest  861.00  in Ford Motor Company on December 26, 2019 and sell it today you would earn a total of  39.00  from holding Ford Motor Company or generate 4.53% return on investment over 30 days.

Pair Corralation between DAIMLER AG and Ford Motor

-0.41
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy96.88%
ValuesDaily Returns

Diversification Opportunities for DAIMLER AG and Ford Motor

DAIMLER AG diversification synergy

Very good diversification

Overlapping area represents the amount of risk that can be diversified away by holding DAIMLER AG and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and DAIMLER AG 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 DAIMLER AG 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 DAIMLER AG i.e. DAIMLER AG and Ford Motor go up and down completely randomly.
See also your portfolio center. Please also try Transaction History module to view history of all your transactions and understand their impact on performance.