This module allows you to analyze existing cross correlation between Ford Motor Company and XU100. You can compare the effects of market volatilities on Ford Motor and XU100 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 XU100. See also your portfolio center. Please also check ongoing floating volatility patterns of Ford Motor and XU100.
|Horizon||30 Days Login to change|
Predicted Return Density
Ford Motor Company vs. XU100
Taking into account the 30 trading days horizon, Ford Motor Company is expected to under-perform the XU100. In addition to that, Ford Motor is 2.84 times more volatile than XU100. It trades about -0.06 of its total potential returns per unit of risk. XU100 is currently generating about 0.34 per unit of volatility. If you would invest 10,060,499 in XU100 on August 17, 2019 and sell it today you would earn a total of 150,263 from holding XU100 or generate 1.49% return on investment over 30 days.
Pair Corralation between Ford Motor and XU100
|Time Period||3 Months [change]|
Diversification Opportunities for Ford Motor and XU100
Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor Company and XU100 in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on XU100 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 XU100. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XU100 has no effect on the direction of Ford Motor i.e. Ford Motor and XU100 go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.