Correlation Analysis Between Ford Motor and Twitter

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

Ford Motor  
00

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. In spite of sluggish performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in November 2019. The ongoing tumult may also be a sign of longer-term up-swing for the firm shareholders.
Twitter  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively invariable forward-looking signals, Twitter is not utilizing all of its potentials. The current stock price agitation, may contribute to short term losses for the management.

Ford Motor and Twitter Volatility Contrast

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  Twitter Inc

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the Twitter. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor Company is 1.43 times less risky than Twitter. The stock trades about -0.14 of its potential returns per unit of risk. The Twitter is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  3,868  in Twitter on September 13, 2019 and sell it today you would earn a total of  168.00  from holding Twitter or generate 4.34% return on investment over 30 days.

Pair Corralation between Ford Motor and Twitter

-0.4
Time Period3 Months [change]
DirectionNegative 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and Twitter

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 Twitter Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Twitter 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 Twitter. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Twitter has no effect on the direction of Ford Motor i.e. Ford Motor and Twitter go up and down completely randomly.
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