Correlation Analysis Between Ford Motor and EURONEXT BEL-20

This module allows you to analyze existing cross correlation between Ford Motor Company and EURONEXT BEL-20. You can compare the effects of market volatilities on Ford Motor and EURONEXT BEL-20 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 EURONEXT BEL-20. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and EURONEXT BEL-20.
Horizon     30 Days    Login   to change
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Comparative Performance

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  EURONEXT BEL-20

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor is expected to generate 3.29 times less return on investment than EURONEXT BEL-20. In addition to that, Ford Motor is 1.65 times more volatile than EURONEXT BEL-20. It trades about 0.04 of its total potential returns per unit of risk. EURONEXT BEL-20 is currently generating about 0.22 per unit of volatility. If you would invest  344,509  in EURONEXT BEL-20 on June 22, 2019 and sell it today you would earn a total of  23,540  from holding EURONEXT BEL-20 or generate 6.83% return on investment over 30 days.

Pair Corralation between Ford Motor and EURONEXT BEL-20

0.78
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and EURONEXT BEL-20

Ford Motor Company diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and EURONEXT BEL-20 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on EURONEXT BEL-20 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 EURONEXT BEL-20. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EURONEXT BEL-20 has no effect on the direction of Ford Motor i.e. Ford Motor and EURONEXT BEL-20 go up and down completely randomly.
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