Correlation Analysis Between Ford Motor and ATT

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

Ford Motor and ATT Volatility Contrast

 Predicted Return Density 

Ford Motor Company  vs.  ATT

 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 ATT. However, Ford Motor is 1.33 times more volatile than ATT. It trades about -0.02 of its potential returns per unit of risk. ATT is currently generating about -0.09 per unit of risk. If you would invest  876.00  in Ford Motor Company on November 16, 2018 and sell it today you would lose (24.00)  from holding Ford Motor Company or give up 2.74% of portfolio value over 30 days.

Pair Corralation between Ford Motor and ATT

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Ford Motor and ATT

Ford Motor Company diversification synergy

Very good diversification

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

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See also your portfolio center. Please also try Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.