Correlation Analysis Between Ford Motor and All Ords

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

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  All Ords

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor is expected to generate 19.66 times less return on investment than All Ords. In addition to that, Ford Motor is 2.64 times more volatile than All Ords. It trades about 0.01 of its total potential returns per unit of risk. All Ords is currently generating about 0.3 per unit of volatility. If you would invest  592,430  in All Ords on February 17, 2019 and sell it today you would earn a total of  35,230  from holding All Ords or generate 5.95% return on investment over 30 days.

Pair Corralation between Ford Motor and All Ords

-0.01
Time Period2 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy82.5%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and All Ords

Ford Motor Company diversification synergy

Good diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and All Ords in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on All Ords 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 All Ords. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Ords has no effect on the direction of Ford Motor i.e. Ford Motor and All Ords go up and down completely randomly.
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