This module allows you to analyze existing cross correlation between Ford Motor Company and Visa. You can compare the effects of market volatilities on Ford Motor and Visa 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 Visa. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and Visa.
Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the Visa. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor Company is 1.23 times less risky than Visa. The stock trades about -0.51 of its potential returns per unit of risk. The Visa is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 13,533 in Visa on June 22, 2018 and sell it today you would earn a total of 566.00 from holding Visa or generate 4.18% return on investment over 30 days.
Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and Visa Inc in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Visa 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 Visa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Visa has no effect on the direction of Ford Motor i.e. Ford Motor and Visa go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.