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|
Predicted Return Density
Ford Motor Company vs. NASDAQ UK
Taking into account the 30 trading days horizon, Ford Motor Company is expected to generate 1.95 times more return on investment than NASDAQ UK. However, Ford Motor is 1.95 times more volatile than NASDAQ UK. It trades about 0.0 of its potential returns per unit of risk. NASDAQ UK is currently generating about -0.03 per unit of risk. If you would invest 1,024 in Ford Motor Company on June 20, 2019 and sell it today you would lose (4.00) from holding Ford Motor Company or give up 0.39% of portfolio value over 30 days.
Pair Corralation between Ford Motor and NASDAQ UK
|Time Period||2 Months [change]|
Diversification Opportunities for Ford Motor and NASDAQ UK
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.
See also your portfolio center. Please also try Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.