Correlation Between Ford and CCC Intelligent
Can any of the company-specific risk be diversified away by investing in both Ford and CCC Intelligent 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 CCC Intelligent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and CCC Intelligent Solutions, you can compare the effects of market volatilities on Ford and CCC Intelligent 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 CCC Intelligent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and CCC Intelligent.
Diversification Opportunities for Ford and CCC Intelligent
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and CCC is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and CCC Intelligent Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCC Intelligent Solutions 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 CCC Intelligent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCC Intelligent Solutions has no effect on the direction of Ford i.e., Ford and CCC Intelligent go up and down completely randomly.
Pair Corralation between Ford and CCC Intelligent
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.97 times more return on investment than CCC Intelligent. However, Ford Motor is 1.03 times less risky than CCC Intelligent. It trades about 0.16 of its potential returns per unit of risk. CCC Intelligent Solutions is currently generating about -0.16 per unit of risk. If you would invest 1,137 in Ford Motor on October 9, 2025 and sell it today you would earn a total of 243.00 from holding Ford Motor or generate 21.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 27.87% |
| Values | Daily Returns |
Ford Motor vs. CCC Intelligent Solutions
Performance |
| Timeline |
| Ford Motor |
| CCC Intelligent Solutions |
Risk-Adjusted Performance
Weakest
Weak | Strong |
Ford and CCC Intelligent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and CCC Intelligent
The main advantage of trading using opposite Ford and CCC Intelligent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, CCC Intelligent 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 CCC Intelligent will offset losses from the drop in CCC Intelligent's long position.| Ford vs. Blue Bird Corp | Ford vs. Adient PLC | Ford vs. Goodyear Tire Rubber | Ford vs. Lotus Technology American |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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