Correlation Between Ford and InMed Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Ford and InMed Pharmaceuticals 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 InMed Pharmaceuticals into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and InMed Pharmaceuticals, you can compare the effects of market volatilities on Ford and InMed Pharmaceuticals 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 InMed Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and InMed Pharmaceuticals.
Diversification Opportunities for Ford and InMed Pharmaceuticals
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and InMed is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and InMed Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on InMed Pharmaceuticals 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 InMed Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of InMed Pharmaceuticals has no effect on the direction of Ford i.e., Ford and InMed Pharmaceuticals go up and down completely randomly.
Pair Corralation between Ford and InMed Pharmaceuticals
Taking into account the 90-day investment horizon Ford Motor is expected to generate 0.57 times more return on investment than InMed Pharmaceuticals. However, Ford Motor is 1.76 times less risky than InMed Pharmaceuticals. It trades about 0.1 of its potential returns per unit of risk. InMed Pharmaceuticals is currently generating about -0.2 per unit of risk. If you would invest 1,158 in Ford Motor on August 28, 2025 and sell it today you would earn a total of 161.00 from holding Ford Motor or generate 13.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.44% |
| Values | Daily Returns |
Ford Motor vs. InMed Pharmaceuticals
Performance |
| Timeline |
| Ford Motor |
| InMed Pharmaceuticals |
Ford and InMed Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and InMed Pharmaceuticals
The main advantage of trading using opposite Ford and InMed Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, InMed Pharmaceuticals 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 InMed Pharmaceuticals will offset losses from the drop in InMed Pharmaceuticals' long position.| Ford vs. Australian Agricultural | Ford vs. Dairy Farm International | Ford vs. North American Construction | Ford vs. Gaming Realms plc |
| InMed Pharmaceuticals vs. Solstad Offshore ASA | InMed Pharmaceuticals vs. Construction Partners | InMed Pharmaceuticals vs. Dream Office Real | InMed Pharmaceuticals vs. Golden Energy Offshore |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |