Correlation Between Ford Otomotiv and Yukselen Celik
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Yukselen Celik 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 Yukselen Celik 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 Yukselen Celik As, you can compare the effects of market volatilities on Ford Otomotiv and Yukselen Celik 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 Yukselen Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Yukselen Celik.
Diversification Opportunities for Ford Otomotiv and Yukselen Celik
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Yukselen is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Yukselen Celik As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yukselen Celik As 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 Yukselen Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yukselen Celik As has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Yukselen Celik go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Yukselen Celik
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to generate 0.45 times more return on investment than Yukselen Celik. However, Ford Otomotiv Sanayi is 2.24 times less risky than Yukselen Celik. It trades about 0.07 of its potential returns per unit of risk. Yukselen Celik As is currently generating about 0.03 per unit of risk. If you would invest 48,359 in Ford Otomotiv Sanayi on September 23, 2024 and sell it today you would earn a total of 46,591 from holding Ford Otomotiv Sanayi or generate 96.34% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ford Otomotiv Sanayi vs. Yukselen Celik As
Performance |
Timeline |
Ford Otomotiv Sanayi |
Yukselen Celik As |
Ford Otomotiv and Yukselen Celik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ford Otomotiv and Yukselen Celik
The main advantage of trading using opposite Ford Otomotiv and Yukselen Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Yukselen Celik 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 Yukselen Celik will offset losses from the drop in Yukselen Celik's long position.Ford Otomotiv vs. Tofas Turk Otomobil | Ford Otomotiv vs. Hektas Ticaret TAS | Ford Otomotiv vs. Eregli Demir ve | Ford Otomotiv vs. Aksa Akrilik Kimya |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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