This module allows you to analyze existing cross correlation between Ford Motor Company and Taiwan Wtd. You can compare the effects of market volatilities on Ford Motor and Taiwan Wtd 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 Taiwan Wtd. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and Taiwan Wtd.
|Horizon||30 Days Login to change|
Predicted Return Density
Ford Motor Company vs. Taiwan Wtd
Taking into account the 30 trading days horizon, Ford Motor is expected to generate 3.62 times less return on investment than Taiwan Wtd. In addition to that, Ford Motor is 1.55 times more volatile than Taiwan Wtd. It trades about 0.04 of its total potential returns per unit of risk. Taiwan Wtd is currently generating about 0.23 per unit of volatility. If you would invest 1,035,061 in Taiwan Wtd on June 22, 2019 and sell it today you would earn a total of 59,392 from holding Taiwan Wtd or generate 5.74% return on investment over 30 days.
Pair Corralation between Ford Motor and Taiwan Wtd
|Time Period||2 Months [change]|
Diversification Opportunities for Ford Motor and Taiwan Wtd
Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and Taiwan Wtd in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Taiwan Wtd 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 Taiwan Wtd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiwan Wtd has no effect on the direction of Ford Motor i.e. Ford Motor and Taiwan Wtd go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.