Correlation Between Ford and MasterBeef Group

Can any of the company-specific risk be diversified away by investing in both Ford and MasterBeef Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Ford and MasterBeef Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ford Motor and MasterBeef Group Ordinary, you can compare the effects of market volatilities on Ford and MasterBeef Group 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 with a short position of MasterBeef Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and MasterBeef Group.

Diversification Opportunities for Ford and MasterBeef Group

-0.52

Correlation Coefficient

Ford  MasterBeef Group

Excellent diversification

The 3 months correlation between Ford and MasterBeef is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and MasterBeef Group Ordinary in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MasterBeef Group Ordinary and Ford 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 are associated (or correlated) with MasterBeef Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MasterBeef Group Ordinary has no effect on the direction of Ford i.e., Ford and MasterBeef Group go up and down completely randomly.

Pair Corralation between Ford and MasterBeef Group

Given the investment horizon of 90 days Ford is expected to generate 5.56 times less return on investment than MasterBeef Group. But when comparing it to its historical volatility, Ford Motor is 22.1 times less risky than MasterBeef Group. It trades about 0.12 of its potential returns per unit of risk. MasterBeef Group Ordinary is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,488  in MasterBeef Group Ordinary on July 24, 2025 and sell it today you would lose (533.00) from holding MasterBeef Group Ordinary or give up 35.82% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Ford Motor  vs.  MasterBeef Group Ordinary

Ford Motor

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Ford is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

MasterBeef Group Ordinary

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MasterBeef Group Ordinary are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal fundamental drivers, MasterBeef Group sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ford and MasterBeef Group

The main advantage of trading using opposite Ford and MasterBeef Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, MasterBeef Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MasterBeef Group will offset losses from the drop in MasterBeef Group's long position.

The idea behind Ford Motor and MasterBeef Group Ordinary pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.