Correlation Analysis Between Ford Motor and IPC

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

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  IPC

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor is expected to generate 67.13 times less return on investment than IPC. In addition to that, Ford Motor is 1.66 times more volatile than IPC. It trades about 0.0 of its total potential returns per unit of risk. IPC is currently generating about 0.06 per unit of volatility. If you would invest  4,284,146  in IPC on November 14, 2019 and sell it today you would earn a total of  141,297  from holding IPC or generate 3.3% return on investment over 30 days.

Pair Corralation between Ford Motor and IPC

-0.03
Time Period3 Months [change]
DirectionNegative 
StrengthInsignificant
Accuracy96.97%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and IPC

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 IPC in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on IPC 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 IPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IPC has no effect on the direction of Ford Motor i.e. Ford Motor and IPC go up and down completely randomly.
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See also your portfolio center. Please also try Pattern Recognition module to use different pattern recognition models to time the market across multiple global exchanges.


 
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