Correlation Between Ford and Peker Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Ford and Peker Gayrimenkul 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 Ford and Peker Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Peker Gayrimenkul Yatirim, you can compare the effects of market volatilities on Ford and Peker Gayrimenkul 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 Ford with a short position of Peker Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Peker Gayrimenkul.
Diversification Opportunities for Ford and Peker Gayrimenkul
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and Peker is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim and Ford 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 Ford Motor are associated (or correlated) with Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of Ford i.e., Ford and Peker Gayrimenkul go up and down completely randomly.
Pair Corralation between Ford and Peker Gayrimenkul
Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the Peker Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor is 2.51 times less risky than Peker Gayrimenkul. The stock trades about -0.16 of its potential returns per unit of risk. The Peker Gayrimenkul Yatirim is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 110.00 in Peker Gayrimenkul Yatirim on October 7, 2024 and sell it today you would earn a total of 41.00 from holding Peker Gayrimenkul Yatirim or generate 37.27% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 95.35% |
Values | Daily Returns |
Ford Motor vs. Peker Gayrimenkul Yatirim
Performance |
Timeline |
Ford Motor |
Peker Gayrimenkul Yatirim |
Ford and Peker Gayrimenkul Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ford and Peker Gayrimenkul
The main advantage of trading using opposite Ford and Peker Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Peker Gayrimenkul 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 Peker Gayrimenkul will offset losses from the drop in Peker Gayrimenkul's long position.The idea behind Ford Motor and Peker Gayrimenkul Yatirim 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.Peker Gayrimenkul vs. Galatasaray Sportif Sinai | Peker Gayrimenkul vs. Bms Birlesik Metal | Peker Gayrimenkul vs. Cuhadaroglu Metal Sanayi | Peker Gayrimenkul vs. KOC METALURJI |
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 CEOs Directory module to screen CEOs from public companies around the world.
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