Correlation Between Celebi Hava and Ford Otomotiv
Can any of the company-specific risk be diversified away by investing in both Celebi Hava and Ford Otomotiv 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 Celebi Hava and Ford Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebi Hava Servisi and Ford Otomotiv Sanayi, you can compare the effects of market volatilities on Celebi Hava and Ford Otomotiv 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 Celebi Hava with a short position of Ford Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebi Hava and Ford Otomotiv.
Diversification Opportunities for Celebi Hava and Ford Otomotiv
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Celebi and Ford is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Celebi Hava Servisi and Ford Otomotiv Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Otomotiv Sanayi and Celebi Hava 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 Celebi Hava Servisi are associated (or correlated) with Ford Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Otomotiv Sanayi has no effect on the direction of Celebi Hava i.e., Celebi Hava and Ford Otomotiv go up and down completely randomly.
Pair Corralation between Celebi Hava and Ford Otomotiv
Assuming the 90 days trading horizon Celebi Hava Servisi is expected to generate 1.14 times more return on investment than Ford Otomotiv. However, Celebi Hava is 1.14 times more volatile than Ford Otomotiv Sanayi. It trades about 0.13 of its potential returns per unit of risk. Ford Otomotiv Sanayi is currently generating about -0.04 per unit of risk. If you would invest 170,900 in Celebi Hava Servisi on September 23, 2024 and sell it today you would earn a total of 20,800 from holding Celebi Hava Servisi or generate 12.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Celebi Hava Servisi vs. Ford Otomotiv Sanayi
Performance |
Timeline |
Celebi Hava Servisi |
Ford Otomotiv Sanayi |
Celebi Hava and Ford Otomotiv Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Celebi Hava and Ford Otomotiv
The main advantage of trading using opposite Celebi Hava and Ford Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebi Hava position performs unexpectedly, Ford Otomotiv 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 Otomotiv will offset losses from the drop in Ford Otomotiv's long position.Celebi Hava vs. Eregli Demir ve | Celebi Hava vs. Turkiye Petrol Rafinerileri | Celebi Hava vs. Turkish Airlines | Celebi Hava vs. Ford Otomotiv Sanayi |
Ford Otomotiv vs. Eregli Demir ve | Ford Otomotiv vs. Tofas Turk Otomobil | Ford Otomotiv vs. Turkiye Petrol Rafinerileri | Ford Otomotiv vs. Turkiye Sise ve |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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