Correlation Analysis Between Ford Motor and NZSE

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

 Predicted Return Density 
      Returns 

Ford Motor Company  vs.  NZSE

 Performance (%) 
      Timeline 

Pair Volatility

Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the NZSE. In addition to that, Ford Motor is 2.12 times more volatile than NZSE. It trades about -0.09 of its total potential returns per unit of risk. NZSE is currently generating about 0.1 per unit of volatility. If you would invest  1,032,729  in NZSE on August 20, 2019 and sell it today you would earn a total of  47,376  from holding NZSE or generate 4.59% return on investment over 30 days.

Pair Corralation between Ford Motor and NZSE

0.18
Time Period3 Months [change]
DirectionPositive 
StrengthInsignificant
Accuracy98.41%
ValuesDaily Returns

Diversification Opportunities for Ford Motor and NZSE

Ford Motor Company diversification synergy

Average diversification

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