Correlation Between Ford and Otis Gold
Can any of the company-specific risk be diversified away by investing in both Ford and Otis Gold at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ford and Otis Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Otis Gold Corp, you can compare the effects of market volatilities on Ford and Otis Gold 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 with a short position of Otis Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Otis Gold.
Diversification Opportunities for Ford and Otis Gold
Pay attention - limited upside
The 3 months correlation between Ford and Otis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Otis Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otis Gold Corp and Ford 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 are associated (or correlated) with Otis Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otis Gold Corp has no effect on the direction of Ford i.e., Ford and Otis Gold go up and down completely randomly.
Pair Corralation between Ford and Otis Gold
If you would invest 1,256 in Ford Motor on January 25, 2024 and sell it today you would earn a total of 38.00 from holding Ford Motor or generate 3.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Ford Motor vs. Otis Gold Corp
Performance |
| Timeline |
| Ford Motor |
| Otis Gold Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ford and Otis Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Otis Gold
The main advantage of trading using opposite Ford and Otis Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Otis Gold can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Otis Gold will offset losses from the drop in Otis Gold's long position.The idea behind Ford Motor and Otis Gold Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Otis Gold vs. Scandinavian Tobacco Group | Otis Gold vs. Acco Brands | Otis Gold vs. Zane Interactive Publishing | Otis Gold vs. 51Talk Online Education |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |