Correlation Analysis Between Ford Motor and Alcoa

This module allows you to analyze existing cross correlation between Ford Motor Company and Alcoa Corporation. You can compare the effects of market volatilities on Ford Motor and Alcoa 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 Ford Motor with a short position of Alcoa. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and Alcoa.
Horizon     30 Days    Login   to change
Symbolsvs
Compare Efficiency

Comparative Performance

Ford Motor  
2

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.
Alcoa  
0

Risk-Adjusted Performance

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

Ford Motor and Alcoa Volatility Contrast

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  Alcoa Corp.

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 0.75 times more return on investment than Alcoa. However, Ford Motor Company is 1.34 times less risky than Alcoa. It trades about 0.03 of its potential returns per unit of risk. Alcoa Corporation is currently generating about -0.2 per unit of risk. If you would invest  851.00  in Ford Motor Company on November 17, 2018 and sell it today you would earn a total of  19.50  from holding Ford Motor Company or generate 2.29% return on investment over 30 days.

Pair Corralation between Ford Motor and Alcoa

0.1
Time Period2 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and Alcoa

Ford Motor Company diversification synergy

Average diversification

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

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See also your portfolio center. Please also try Balance Of Power module to check stock momentum by analyzing balance of power indicator and other technical ratios.


 
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