Correlation Between Ford and Kinetics Paradigm
Can any of the company-specific risk be diversified away by investing in both Ford and Kinetics Paradigm 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 Kinetics Paradigm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Kinetics Paradigm Fund, you can compare the effects of market volatilities on Ford and Kinetics Paradigm 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 Kinetics Paradigm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Kinetics Paradigm.
Diversification Opportunities for Ford and Kinetics Paradigm
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Ford and Kinetics is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Kinetics Paradigm Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kinetics Paradigm 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 Kinetics Paradigm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kinetics Paradigm has no effect on the direction of Ford i.e., Ford and Kinetics Paradigm go up and down completely randomly.
Pair Corralation between Ford and Kinetics Paradigm
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.28 times more return on investment than Kinetics Paradigm. However, Ford is 1.28 times more volatile than Kinetics Paradigm Fund. It trades about 0.1 of its potential returns per unit of risk. Kinetics Paradigm Fund is currently generating about -0.05 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 Together |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Ford Motor vs. Kinetics Paradigm Fund
Performance |
| Timeline |
| Ford Motor |
| Kinetics Paradigm |
Ford and Kinetics Paradigm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Kinetics Paradigm
The main advantage of trading using opposite Ford and Kinetics Paradigm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Kinetics Paradigm 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 Kinetics Paradigm will offset losses from the drop in Kinetics Paradigm's long position.| Ford vs. Xenia Hotels Resorts | Ford vs. Coeur Mining | Ford vs. Wyndham Hotels Resorts | Ford vs. American Hotel Income |
| Kinetics Paradigm vs. Legg Mason Bw | Kinetics Paradigm vs. Shelton Funds | Kinetics Paradigm vs. T Rowe Price | Kinetics Paradigm vs. Barings Active Short |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |