Correlation Between Tofas Turk and Atlas Menkul
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Atlas Menkul 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 Tofas Turk and Atlas Menkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tofas Turk Otomobil and Atlas Menkul Kiymetler, you can compare the effects of market volatilities on Tofas Turk and Atlas Menkul 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 Tofas Turk with a short position of Atlas Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Atlas Menkul.
Diversification Opportunities for Tofas Turk and Atlas Menkul
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tofas and Atlas is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Atlas Menkul Kiymetler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Menkul Kiymetler and Tofas Turk 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 Tofas Turk Otomobil are associated (or correlated) with Atlas Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Menkul Kiymetler has no effect on the direction of Tofas Turk i.e., Tofas Turk and Atlas Menkul go up and down completely randomly.
Pair Corralation between Tofas Turk and Atlas Menkul
Assuming the 90 days trading horizon Tofas Turk is expected to generate 2.48 times less return on investment than Atlas Menkul. But when comparing it to its historical volatility, Tofas Turk Otomobil is 1.35 times less risky than Atlas Menkul. It trades about 0.03 of its potential returns per unit of risk. Atlas Menkul Kiymetler is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 369.00 in Atlas Menkul Kiymetler on September 23, 2024 and sell it today you would earn a total of 307.00 from holding Atlas Menkul Kiymetler or generate 83.2% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Tofas Turk Otomobil vs. Atlas Menkul Kiymetler
Performance |
Timeline |
Tofas Turk Otomobil |
Atlas Menkul Kiymetler |
Tofas Turk and Atlas Menkul Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tofas Turk and Atlas Menkul
The main advantage of trading using opposite Tofas Turk and Atlas Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Atlas Menkul 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 Atlas Menkul will offset losses from the drop in Atlas Menkul's long position.Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Hektas Ticaret TAS | Tofas Turk vs. Eregli Demir ve | Tofas Turk 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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