Correlation Between Emmis Communications and Ford
Can any of the company-specific risk be diversified away by investing in both Emmis Communications and Ford at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Emmis Communications and Ford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emmis Communications Corp and Ford Motor, you can compare the effects of market volatilities on Emmis Communications and Ford 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 Emmis Communications with a short position of Ford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emmis Communications and Ford.
Diversification Opportunities for Emmis Communications and Ford
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Emmis and Ford is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Emmis Communications Corp and Ford Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and Emmis Communications 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 Emmis Communications Corp are associated (or correlated) with Ford. 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 Emmis Communications i.e., Emmis Communications and Ford go up and down completely randomly.
Pair Corralation between Emmis Communications and Ford
If you would invest 1,218 in Ford Motor on January 17, 2024 and sell it today you would earn a total of 5.00 from holding Ford Motor or generate 0.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Emmis Communications Corp vs. Ford Motor
Performance |
| Timeline |
| Emmis Communications Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ford Motor |
Emmis Communications and Ford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emmis Communications and Ford
The main advantage of trading using opposite Emmis Communications and Ford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emmis Communications position performs unexpectedly, Ford can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ford will offset losses from the drop in Ford's long position.| Emmis Communications vs. RTL Group SA | Emmis Communications vs. ITV PLC ADR | Emmis Communications vs. iHeartMedia | Emmis Communications vs. ProSiebenSat1 Media AG |
| Ford vs. Hycroft Mining Holding | Ford vs. Exela Technologies | Ford vs. Aquagold International | Ford vs. Thrivent High Yield |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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