Correlation Between Ford and Radware
Can any of the company-specific risk be diversified away by investing in both Ford and Radware 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 Radware into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Radware, you can compare the effects of market volatilities on Ford and Radware 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 Radware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Radware.
Diversification Opportunities for Ford and Radware
Excellent diversification
The 3 months correlation between Ford and Radware is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Radware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radware 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 Radware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radware has no effect on the direction of Ford i.e., Ford and Radware go up and down completely randomly.
Pair Corralation between Ford and Radware
Taking into account the 90-day investment horizon Ford Motor is expected to generate 1.31 times more return on investment than Radware. However, Ford is 1.31 times more volatile than Radware. It trades about 0.09 of its potential returns per unit of risk. Radware is currently generating about -0.05 per unit of risk. If you would invest 1,155 in Ford Motor on September 4, 2025 and sell it today you would earn a total of 141.00 from holding Ford Motor or generate 12.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Motor vs. Radware
Performance |
| Timeline |
| Ford Motor |
| Radware |
Ford and Radware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Radware
The main advantage of trading using opposite Ford and Radware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Radware 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 Radware will offset losses from the drop in Radware's long position.| Ford vs. Guangdong Investment Limited | Ford vs. Delaware Investments Florida | Ford vs. Apartment Investment and | Ford vs. BlackRock Investment Quality |
| Radware vs. Stewart Information Services | Radware vs. Data Evolution Holdings | Radware vs. Cass Information Systems | Radware vs. Ark Restaurants Corp |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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