Correlation Between Ford Otomotiv and RONESANS GAYRIMENKUL

Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and RONESANS 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 Otomotiv and RONESANS GAYRIMENKUL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ford Otomotiv Sanayi and RONESANS GAYRIMENKUL YAT, you can compare the effects of market volatilities on Ford Otomotiv and RONESANS 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 Otomotiv with a short position of RONESANS GAYRIMENKUL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and RONESANS GAYRIMENKUL.

Diversification Opportunities for Ford Otomotiv and RONESANS GAYRIMENKUL

-0.1

Correlation Coefficient

Ford Otomotiv  RONESANS GAYRIMENKUL

Good diversification

The 3 months correlation between Ford and RONESANS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and RONESANS GAYRIMENKUL YAT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RONESANS GAYRIMENKUL YAT and Ford Otomotiv 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 Otomotiv Sanayi are associated (or correlated) with RONESANS GAYRIMENKUL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RONESANS GAYRIMENKUL YAT has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and RONESANS GAYRIMENKUL go up and down completely randomly.

Pair Corralation between Ford Otomotiv and RONESANS GAYRIMENKUL

Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to generate 1.11 times more return on investment than RONESANS GAYRIMENKUL. However, Ford Otomotiv is 1.11 times more volatile than RONESANS GAYRIMENKUL YAT. It trades about 0.07 of its potential returns per unit of risk. RONESANS GAYRIMENKUL YAT is currently generating about -0.03 per unit of risk. If you would invest  46,181  in Ford Otomotiv Sanayi on October 12, 2024 and sell it today you would earn a total of  48,069  from holding Ford Otomotiv Sanayi or generate 104.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	35.76%
Values	Daily Returns

Ford Otomotiv Sanayi  vs.  RONESANS GAYRIMENKUL YAT

Ford Otomotiv Sanayi

Risk-Adjusted Performance

4 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Ford Otomotiv Sanayi are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Ford Otomotiv is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

RONESANS GAYRIMENKUL YAT

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in RONESANS GAYRIMENKUL YAT are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, RONESANS GAYRIMENKUL demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ford Otomotiv and RONESANS GAYRIMENKUL

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

The idea behind Ford Otomotiv Sanayi and RONESANS GAYRIMENKUL YAT 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.

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.