Correlation Between Ford and Invesco AT1
Can any of the company-specific risk be diversified away by investing in both Ford and Invesco AT1 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 Invesco AT1 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Invesco AT1 Capital, you can compare the effects of market volatilities on Ford and Invesco AT1 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 Invesco AT1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Invesco AT1.
Diversification Opportunities for Ford and Invesco AT1
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ford and Invesco is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Invesco AT1 Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco AT1 Capital 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 Invesco AT1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco AT1 Capital has no effect on the direction of Ford i.e., Ford and Invesco AT1 go up and down completely randomly.
Pair Corralation between Ford and Invesco AT1
Taking into account the 90-day investment horizon Ford Motor is expected to generate 13.16 times more return on investment than Invesco AT1. However, Ford is 13.16 times more volatile than Invesco AT1 Capital. It trades about 0.09 of its potential returns per unit of risk. Invesco AT1 Capital is currently generating about 0.22 per unit of risk. If you would invest 1,156 in Ford Motor on September 6, 2025 and sell it today you would earn a total of 147.00 from holding Ford Motor or generate 12.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Invesco AT1 Capital
Performance |
| Timeline |
| Ford Motor |
| Invesco AT1 Capital |
Ford and Invesco AT1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Invesco AT1
The main advantage of trading using opposite Ford and Invesco AT1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Invesco AT1 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 Invesco AT1 will offset losses from the drop in Invesco AT1's long position.| Ford vs. Bangkok Dusit Medical | Ford vs. AeroVironment | Ford vs. Tata Steel Limited | Ford vs. American Medical Technologies |
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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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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