Correlation Between Ford and Academy Sports
Can any of the company-specific risk be diversified away by investing in both Ford and Academy Sports 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 Academy Sports into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Academy Sports Outdoors, you can compare the effects of market volatilities on Ford and Academy Sports 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 Academy Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Academy Sports.
Diversification Opportunities for Ford and Academy Sports
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and Academy is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Academy Sports Outdoors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Academy Sports Outdoors 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 Academy Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Academy Sports Outdoors has no effect on the direction of Ford i.e., Ford and Academy Sports go up and down completely randomly.
Pair Corralation between Ford and Academy Sports
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.86 times more return on investment than Academy Sports. However, Ford Motor is 1.16 times less risky than Academy Sports. It trades about 0.1 of its potential returns per unit of risk. Academy Sports Outdoors is currently generating about -0.05 per unit of risk. If you would invest 1,164 in Ford Motor on August 29, 2025 and sell it today you would earn a total of 155.00 from holding Ford Motor or generate 13.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Academy Sports Outdoors
Performance |
| Timeline |
| Ford Motor |
| Academy Sports Outdoors |
Ford and Academy Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Academy Sports
The main advantage of trading using opposite Ford and Academy Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Academy Sports 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 Academy Sports will offset losses from the drop in Academy Sports' long position.| Ford vs. Australian Agricultural | Ford vs. Dairy Farm International | Ford vs. North American Construction | Ford vs. Gaming Realms plc |
| Academy Sports vs. LPKF Laser Electronics | Academy Sports vs. Where Food Comes | Academy Sports vs. Klegg Electronics | Academy Sports vs. BYD Electronic |
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.
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