Correlation Between Ford and Ovintiv
Can any of the company-specific risk be diversified away by investing in both Ford and Ovintiv 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 Ovintiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Ovintiv, you can compare the effects of market volatilities on Ford and Ovintiv 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 Ovintiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Ovintiv.
Diversification Opportunities for Ford and Ovintiv
Very good diversification
The 3 months correlation between Ford and Ovintiv is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Ovintiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ovintiv 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 Ovintiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ovintiv has no effect on the direction of Ford i.e., Ford and Ovintiv go up and down completely randomly.
Pair Corralation between Ford and Ovintiv
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.17 times more return on investment than Ovintiv. However, Ford is 1.17 times more volatile than Ovintiv. It trades about 0.09 of its potential returns per unit of risk. Ovintiv is currently generating about 0.04 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Ovintiv
Performance |
| Timeline |
| Ford Motor |
| Ovintiv |
Ford and Ovintiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Ovintiv
The main advantage of trading using opposite Ford and Ovintiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Ovintiv 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 Ovintiv will offset losses from the drop in Ovintiv's long position.| Ford vs. Bangkok Dusit Medical | Ford vs. AeroVironment | Ford vs. Tata Steel Limited | Ford vs. American Medical Technologies |
| Ovintiv vs. Caribbean Utilities | Ovintiv vs. Advent Wireless | Ovintiv vs. Broadcom CDR | Ovintiv vs. Rogers Communications |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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