Correlation Between Ford and COSCO SHIPPING
Can any of the company-specific risk be diversified away by investing in both Ford and COSCO SHIPPING 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 COSCO SHIPPING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and COSCO SHIPPING Holdings, you can compare the effects of market volatilities on Ford and COSCO SHIPPING 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 COSCO SHIPPING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and COSCO SHIPPING.
Diversification Opportunities for Ford and COSCO SHIPPING
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ford and COSCO is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and COSCO SHIPPING Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COSCO SHIPPING Holdings 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 COSCO SHIPPING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COSCO SHIPPING Holdings has no effect on the direction of Ford i.e., Ford and COSCO SHIPPING go up and down completely randomly.
Pair Corralation between Ford and COSCO SHIPPING
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.11 times more return on investment than COSCO SHIPPING. However, Ford is 1.11 times more volatile than COSCO SHIPPING Holdings. It trades about 0.09 of its potential returns per unit of risk. COSCO SHIPPING Holdings is currently generating about 0.05 per unit of risk. If you would invest 1,155 in Ford Motor on September 4, 2025 and sell it today you would earn a total of 154.00 from holding Ford Motor or generate 13.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Ford Motor vs. COSCO SHIPPING Holdings
Performance |
| Timeline |
| Ford Motor |
| COSCO SHIPPING Holdings |
Ford and COSCO SHIPPING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and COSCO SHIPPING
The main advantage of trading using opposite Ford and COSCO SHIPPING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, COSCO SHIPPING 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 COSCO SHIPPING will offset losses from the drop in COSCO SHIPPING's long position.| Ford vs. Guangdong Investment Limited | Ford vs. Delaware Investments Florida | Ford vs. Apartment Investment and | Ford vs. BlackRock Investment Quality |
| COSCO SHIPPING vs. Heritage Insurance Hldgs | COSCO SHIPPING vs. Scandinavian Tobacco Group | COSCO SHIPPING vs. Sabre Insurance Group | COSCO SHIPPING vs. Broadstone Net Lease |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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