Correlation Between Bosch Fren and Koza Altin

Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Koza Altin 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 Bosch Fren and Koza Altin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bosch Fren Sistemleri and Koza Altin Isletmeleri, you can compare the effects of market volatilities on Bosch Fren and Koza Altin 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 Bosch Fren with a short position of Koza Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Koza Altin.

Diversification Opportunities for Bosch Fren and Koza Altin

-0.3

Correlation Coefficient

Bosch Fren  Koza Altin

Very good diversification

The 3 months correlation between Bosch and Koza is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Koza Altin Isletmeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Altin Isletmeleri and Bosch Fren 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 Bosch Fren Sistemleri are associated (or correlated) with Koza Altin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Altin Isletmeleri has no effect on the direction of Bosch Fren i.e., Bosch Fren and Koza Altin go up and down completely randomly.

Pair Corralation between Bosch Fren and Koza Altin

Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to generate 1.0 times more return on investment than Koza Altin. However, Bosch Fren is 1.0 times more volatile than Koza Altin Isletmeleri. It trades about 0.04 of its potential returns per unit of risk. Koza Altin Isletmeleri is currently generating about 0.04 per unit of risk. If you would invest  46,774  in Bosch Fren Sistemleri on September 26, 2024 and sell it today you would earn a total of  20,426  from holding Bosch Fren Sistemleri or generate 43.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Bosch Fren Sistemleri  vs.  Koza Altin Isletmeleri

Bosch Fren Sistemleri

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Bosch Fren Sistemleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Bosch Fren is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Koza Altin Isletmeleri

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Koza Altin Isletmeleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Koza Altin is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bosch Fren and Koza Altin

The main advantage of trading using opposite Bosch Fren and Koza Altin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Koza Altin 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 Koza Altin will offset losses from the drop in Koza Altin's long position.

The idea behind Bosch Fren Sistemleri and Koza Altin Isletmeleri pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.