Correlation Between Ford and Multi-index 2045

Can any of the company-specific risk be diversified away by investing in both Ford and Multi-index 2045 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 Multi-index 2045 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ford Motor and Multi Index 2045 Lifetime, you can compare the effects of market volatilities on Ford and Multi-index 2045 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 Multi-index 2045. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Multi-index 2045.

Diversification Opportunities for Ford and Multi-index 2045

0.8

Correlation Coefficient

Ford  Multi-index 2045

Very poor diversification

The 3 months correlation between Ford and Multi-index is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Multi Index 2045 Lifetime in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Multi Index 2045 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 Multi-index 2045. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Multi Index 2045 has no effect on the direction of Ford i.e., Ford and Multi-index 2045 go up and down completely randomly.

Pair Corralation between Ford and Multi-index 2045

Taking into account the 90-day investment horizon Ford Motor is expected to generate 2.77 times more return on investment than Multi-index 2045. However, Ford is 2.77 times more volatile than Multi Index 2045 Lifetime. It trades about 0.08 of its potential returns per unit of risk. Multi Index 2045 Lifetime is currently generating about 0.2 per unit of risk. If you would invest  1,066  in Ford Motor on May 16, 2025 and sell it today you would earn a total of  78.00  from holding Ford Motor or generate 7.32% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Ford Motor  vs.  Multi Index 2045 Lifetime

Ford Motor

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Motor are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Ford may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Multi Index 2045

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Multi Index 2045 Lifetime are ranked lower than 15 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Multi-index 2045 may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Ford and Multi-index 2045

The main advantage of trading using opposite Ford and Multi-index 2045 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Multi-index 2045 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 Multi-index 2045 will offset losses from the drop in Multi-index 2045's long position.

The idea behind Ford Motor and Multi Index 2045 Lifetime 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.

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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.