Ford Motor Risk Analysis

Ford Motor Company -- USA Stock  

USD 10.60  0.10  0.93%

Macroaxis considers Ford Motor to be not very volatile. Ford Motor secures Sharpe Ratio (or Efficiency) of -0.1681 which denotes Ford Motor had -0.1681% of return per unit of risk over the last 1 month. Macroaxis philosophy towards predicting risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. Ford Motor Company exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm Ford Motor Coefficient Of Variation of 422.36 and Mean Deviation of 1.55 to check risk estimate we provide.
 Time Horizon     30 Days    Login   to change

Ford Motor Market Sensitivity

As returns on market increase, returns on owning Ford Motor are expected to decrease at a much smaller rate. During bear market, Ford Motor is likely to outperform the market.
One Month Beta |Analyze Ford Motor Demand Trend
Check current 30 days Ford Motor correlation with market (DOW)
β = -0.4406
Ford Motor Almost negative betaFord Motor Beta Legend

Ford Motor Technical Analysis

Transformation
The output start index for this execution was zero with a total number of output elements of seventeen. Ford Motor Average Price is the average of the sum of open, high, low and close daily prices of a bar. It can be used to smooth an indicator that normally takes just the closing price as input. View also all equity analysis or get more info about average price price transform indicator.

Projected Return Density Against Market

Taking into account the 30 trading days horizon, Ford Motor Company has beta of -0.4406 suggesting as returns on benchmark increase, returns on holding Ford Motor are expected to decrease at a much smaller rate. During bear market, however, Ford Motor Company is likely to outperform the market. Additionally, Ford Motor Company has a negative alpha implying that the risk taken by holding this equity is not justified. The company is significantly underperforming DOW
 Predicted Return Density 
      Returns 
Taking into account the 30 trading days horizon, the coefficient of variation of Ford Motor is -594.95. The daily returns are destributed with a variance of 4.35 and standard deviation of 2.09. The mean deviation of Ford Motor Company is currently at 1.43. For similar time horizon, the selected benchmark (DOW) has volatility of 1.75
α
Alpha over DOW
=0.65
β
Beta against DOW=0.44
σ
Overall volatility
=2.09
Ir
Information ratio =0.11

Actual Return Volatility

Ford Motor Company accepts 2.0868% volatility on return distribution over the 30 days horizon. DOW inherits 1.7888% risk (volatility on return distribution) over the 30 days horizon.
 Performance (%) 
      Timeline 

Market Risk Breakdown

Ford Motor Volatility Factors

30 Days Market Risk

Not very volatile

Chance of Distress in 24 months

About average

30 Days Economic Sensitivity

Almost neglects market

Total Debt

Ford Motor Total Debt History

Total Debt

Largest Trends

Ford Motor Largest Period Trend

Investment Outlook

Ford Motor Investment Opportunity
Ford Motor Company has a volatility of 2.09 and is 1.17 times more volatile than DOW. 19% of all equities and portfolios are less risky than Ford Motor. Compared to the overall equity markets, volatility of historical daily returns of Ford Motor Company is lower than 19 (%) of all global equities and portfolios over the last 30 days. Use Ford Motor Company to protect against small markets fluctuations. The stock experiences moderate downward daily trend and can be a good diversifier. Check odds of Ford Motor to be traded at $10.39 in 30 days. As returns on market increase, returns on owning Ford Motor are expected to decrease at a much smaller rate. During bear market, Ford Motor is likely to outperform the market.

Ford Motor correlation with market

Very good diversification
Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and equity matching DJI index in the same portfolio.