Correlation Analysis Between Ford Motor and Apple

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

Comparative Performance

Ford Motor  

Risk-Adjusted Performance

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

Risk-Adjusted Performance

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

Ford Motor and Apple Volatility Contrast

 Predicted Return Density 

Ford Motor Company  vs.  Apple Inc

 Performance (%) 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 0.94 times more return on investment than Apple. However, Ford Motor Company is 1.06 times less risky than Apple. It trades about -0.05 of its potential returns per unit of risk. Apple is currently generating about -0.08 per unit of risk. If you would invest  913.00  in Ford Motor Company on December 23, 2018 and sell it today you would lose (63.00)  from holding Ford Motor Company or give up 6.9% of portfolio value over 30 days.

Pair Corralation between Ford Motor and Apple

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Ford Motor and Apple

Ford Motor Company diversification synergy

Very poor diversification

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

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