Pair Correlation Between Ford Motor and Apple

This module allows you to analyze existing cross correlation between Ford Motor Company and Apple Inc. 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.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Ford Motor Company  vs   Apple Inc
 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor is expected to generate 1.3 times less return on investment than Apple. But when comparing it to its historical volatility, Ford Motor Company is 1.07 times less risky than Apple. It trades about 0.12 of its potential returns per unit of risk. Apple Inc is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  15,189  in Apple Inc on September 22, 2017 and sell it today you would earn a total of  436  from holding Apple Inc or generate 2.87% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Ford Motor and Apple
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 Ford Motor Company and Apple Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Inc has no effect on the direction of Ford Motor i.e. Ford Motor and Apple go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Ford Motor

  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor Company are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

Apple Inc

  
10 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Apple Inc are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.