Correlation Between Akcansa Cimento and Bosch Fren
Can any of the company-specific risk be diversified away by investing in both Akcansa Cimento and Bosch Fren 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 Akcansa Cimento and Bosch Fren into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akcansa Cimento Sanayi and Bosch Fren Sistemleri, you can compare the effects of market volatilities on Akcansa Cimento and Bosch Fren 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 Akcansa Cimento with a short position of Bosch Fren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akcansa Cimento and Bosch Fren.
Diversification Opportunities for Akcansa Cimento and Bosch Fren
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akcansa and Bosch is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Akcansa Cimento Sanayi and Bosch Fren Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Fren Sistemleri and Akcansa Cimento 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 Akcansa Cimento Sanayi are associated (or correlated) with Bosch Fren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Fren Sistemleri has no effect on the direction of Akcansa Cimento i.e., Akcansa Cimento and Bosch Fren go up and down completely randomly.
Pair Corralation between Akcansa Cimento and Bosch Fren
Assuming the 90 days trading horizon Akcansa Cimento is expected to generate 6.17 times less return on investment than Bosch Fren. But when comparing it to its historical volatility, Akcansa Cimento Sanayi is 14.3 times less risky than Bosch Fren. It trades about 0.1 of its potential returns per unit of risk. Bosch Fren Sistemleri is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 39,632 in Bosch Fren Sistemleri on October 4, 2024 and sell it today you would earn a total of 28,218 from holding Bosch Fren Sistemleri or generate 71.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Akcansa Cimento Sanayi vs. Bosch Fren Sistemleri
Performance |
Timeline |
Akcansa Cimento Sanayi |
Bosch Fren Sistemleri |
Akcansa Cimento and Bosch Fren Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akcansa Cimento and Bosch Fren
The main advantage of trading using opposite Akcansa Cimento and Bosch Fren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akcansa Cimento position performs unexpectedly, Bosch Fren 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 Bosch Fren will offset losses from the drop in Bosch Fren's long position.Akcansa Cimento vs. Turkish Airlines | Akcansa Cimento vs. Turkiye Sise ve | Akcansa Cimento vs. Cuhadaroglu Metal Sanayi | Akcansa Cimento vs. IZDEMIR Enerji Elektrik |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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