Correlation Analysis Between Ford Motor and Citigroup

This module allows you to analyze existing cross correlation between Ford Motor Company and Citigroup. You can compare the effects of market volatilities on Ford Motor and Citigroup 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 Citigroup. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and Citigroup.
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 Citigroup has generated negative risk-adjusted returns adding no value to investors with long positions.

Ford Motor and Citigroup Volatility Contrast

 Predicted Return Density 

Ford Motor Company  vs.  Citigroup Inc

 Performance (%) 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 1.33 times more return on investment than Citigroup. However, Ford Motor is 1.33 times more volatile than Citigroup. It trades about -0.01 of its potential returns per unit of risk. Citigroup is currently generating about -0.26 per unit of risk. If you would invest  881.00  in Ford Motor Company on November 14, 2018 and sell it today you would lose (17.00)  from holding Ford Motor Company or give up 1.93% of portfolio value over 30 days.

Pair Corralation between Ford Motor and Citigroup

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for Ford Motor and Citigroup

Ford Motor Company diversification synergy

Modest diversification

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

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