Correlation Between Ford and TrueShares Structured
Can any of the company-specific risk be diversified away by investing in both Ford and TrueShares Structured 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 TrueShares Structured into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and TrueShares Structured Outcome, you can compare the effects of market volatilities on Ford and TrueShares Structured 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 TrueShares Structured. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and TrueShares Structured.
Diversification Opportunities for Ford and TrueShares Structured
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ford and TrueShares is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and TrueShares Structured Outcome in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TrueShares Structured 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 TrueShares Structured. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TrueShares Structured has no effect on the direction of Ford i.e., Ford and TrueShares Structured go up and down completely randomly.
Pair Corralation between Ford and TrueShares Structured
If you would invest 1,255 in Ford Motor on September 5, 2025 and sell it today you would earn a total of 59.00 from holding Ford Motor or generate 4.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Ford Motor vs. TrueShares Structured Outcome
Performance |
| Timeline |
| Ford Motor |
| TrueShares Structured |
Risk-Adjusted Performance
Fair
Weak | Strong |
Ford and TrueShares Structured Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and TrueShares Structured
The main advantage of trading using opposite Ford and TrueShares Structured positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, TrueShares Structured 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 TrueShares Structured will offset losses from the drop in TrueShares Structured's long position.| Ford vs. Academy Sports Outdoors | Ford vs. Yuexiu Transport Infrastructure | Ford vs. Boston Beer | Ford vs. Suntory Beverage Food |
| TrueShares Structured vs. FT Vest Equity | TrueShares Structured vs. Northern Lights | TrueShares Structured vs. Diamond Hill Funds | TrueShares Structured vs. Dimensional International High |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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