Correlation Between Mercedes Benz and Ford
Can any of the company-specific risk be diversified away by investing in both Mercedes Benz and Ford 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 Mercedes Benz and Ford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercedes Benz Group and Ford Motor, you can compare the effects of market volatilities on Mercedes Benz and Ford 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 Mercedes Benz with a short position of Ford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercedes Benz and Ford.
Diversification Opportunities for Mercedes Benz and Ford
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mercedes and Ford is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mercedes Benz Group and Ford Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor and Mercedes Benz 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 Mercedes Benz Group are associated (or correlated) with Ford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Mercedes Benz i.e., Mercedes Benz and Ford go up and down completely randomly.
Pair Corralation between Mercedes Benz and Ford
If you would invest 0.00 in Mercedes Benz Group on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Mercedes Benz Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mercedes Benz Group vs. Ford Motor
Performance |
| Timeline |
| Mercedes Benz Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ford Motor |
Mercedes Benz and Ford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercedes Benz and Ford
The main advantage of trading using opposite Mercedes Benz and Ford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercedes Benz position performs unexpectedly, Ford 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 Ford will offset losses from the drop in Ford's long position.| Mercedes Benz vs. Ziff Davis | Mercedes Benz vs. Pinterest | Mercedes Benz vs. United Microelectronics | Mercedes Benz vs. Iridium 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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