Correlation Between Celik Halat and Bosch Fren

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

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

Diversification Opportunities for Celik Halat and Bosch Fren

0.1

Correlation Coefficient

Celik Halat  Bosch Fren

Average diversification

The 3 months correlation between Celik and Bosch is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Celik Halat ve 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 Celik Halat 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 Celik Halat ve 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 Celik Halat i.e., Celik Halat and Bosch Fren go up and down completely randomly.

Pair Corralation between Celik Halat and Bosch Fren

Assuming the 90 days trading horizon Celik Halat is expected to generate 10.46 times less return on investment than Bosch Fren. But when comparing it to its historical volatility, Celik Halat ve is 8.26 times less risky than Bosch Fren. It trades about 0.03 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  43,595  in Bosch Fren Sistemleri on October 5, 2024 and sell it today you would earn a total of  24,305  from holding Bosch Fren Sistemleri or generate 55.75% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Celik Halat ve  vs.  Bosch Fren Sistemleri

Celik Halat ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celik Halat ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Bosch Fren Sistemleri

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bosch Fren Sistemleri are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

Pair Trading with Celik Halat and Bosch Fren

The main advantage of trading using opposite Celik Halat and Bosch Fren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celik Halat 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.

The idea behind Celik Halat ve and Bosch Fren Sistemleri 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.