Correlation Analysis Between Blue Bird and Ford Motor

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

Blue Bird  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Blue Bird Corporation are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In spite of rather sound fundamental drivers, Blue Bird is not utilizing all of its potentials. The ongoing stock price tumult, may contribute to shorter-term losses for the shareholders.
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 rather sound fundamental drivers, Ford Motor is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.

Blue Bird and Ford Motor Volatility Contrast

 Predicted Return Density 
      Returns 

Blue Bird Corp.  vs.  Ford Motor Company

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Blue Bird Corporation is expected to generate 1.36 times more return on investment than Ford Motor. However, Blue Bird is 1.36 times more volatile than Ford Motor Company. It trades about 0.04 of its potential returns per unit of risk. Ford Motor Company is currently generating about -0.04 per unit of risk. If you would invest  1,926  in Blue Bird Corporation on August 17, 2019 and sell it today you would earn a total of  79.00  from holding Blue Bird Corporation or generate 4.1% return on investment over 30 days.

Pair Corralation between Blue Bird and Ford Motor

0.86
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Blue Bird and Ford Motor

Blue Bird Corp. diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Blue Bird Corp. and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and Blue Bird 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 Blue Bird Corporation are associated (or correlated) with Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Blue Bird i.e. Blue Bird and Ford Motor go up and down completely randomly.
See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.


 
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