Correlation Analysis Between Twitter and Ford Motor

This module allows you to analyze existing cross correlation between Twitter and Ford Motor Company. You can compare the effects of market volatilities on Twitter and Ford Motor 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 Twitter with a short position of Ford Motor. See also your portfolio center. Please also check ongoing floating volatility patterns of Twitter and Ford Motor.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Twitter  
88

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Twitter are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Twitter reported solid returns over the last few months and may actually be approaching a breakup point.
Ford Motor  
00

Risk-Adjusted Performance

Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Ford Motor is not utilizing all of its potentials. The new stock price tumult, may contribute to shorter-term losses for the shareholders.

Twitter and Ford Motor Volatility Contrast

 Predicted Return Density 
      Returns 

Twitter Inc  vs.  Ford Motor Company

 Performance (%) 
      Timeline 

Pair Volatility

Given the investment horizon of 30 days, Twitter is expected to generate 1.45 times more return on investment than Ford Motor. However, Twitter is 1.45 times more volatile than Ford Motor Company. It trades about 0.13 of its potential returns per unit of risk. Ford Motor Company is currently generating about -0.05 per unit of risk. If you would invest  3,629  in Twitter on August 18, 2019 and sell it today you would earn a total of  647.00  from holding Twitter or generate 17.83% return on investment over 30 days.

Pair Corralation between Twitter and Ford Motor

0.81
Time Period3 Months [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Twitter and Ford Motor

Twitter Inc diversification synergy

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Twitter Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and Twitter 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 Twitter are associated (or correlated) with Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Twitter i.e. Twitter and Ford Motor go up and down completely randomly.
See also your portfolio center. Please also try Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. drill down to check world indexes.


 
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