Correlation Analysis Between Ford Motor and NASDAQ UK

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

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  NASDAQ UK

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 1.75 times more return on investment than NASDAQ UK. However, Ford Motor is 1.75 times more volatile than NASDAQ UK. It trades about 0.15 of its potential returns per unit of risk. NASDAQ UK is currently generating about 0.12 per unit of risk. If you would invest  883.00  in Ford Motor Company on March 20, 2019 and sell it today you would earn a total of  74.00  from holding Ford Motor Company or generate 8.38% return on investment over 30 days.

Pair Corralation between Ford Motor and NASDAQ UK

0.7
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and NASDAQ UK

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 NASDAQ UK in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on NASDAQ UK 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 NASDAQ UK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NASDAQ UK has no effect on the direction of Ford Motor i.e. Ford Motor and NASDAQ UK go up and down completely randomly.
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See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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