Correlation Between Tofas Turk and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Sekerbank TAS 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 Sekerbank TAS 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 Sekerbank TAS, you can compare the effects of market volatilities on Tofas Turk and Sekerbank TAS 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 Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Sekerbank TAS.
Diversification Opportunities for Tofas Turk and Sekerbank TAS
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tofas and Sekerbank is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS 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 Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Tofas Turk i.e., Tofas Turk and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Tofas Turk and Sekerbank TAS
Assuming the 90 days trading horizon Tofas Turk is expected to generate 2.42 times less return on investment than Sekerbank TAS. But when comparing it to its historical volatility, Tofas Turk Otomobil is 1.21 times less risky than Sekerbank TAS. It trades about 0.03 of its potential returns per unit of risk. Sekerbank TAS is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 239.00 in Sekerbank TAS on September 24, 2024 and sell it today you would earn a total of 235.00 from holding Sekerbank TAS or generate 98.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 99.8% |
Values | Daily Returns |
Tofas Turk Otomobil vs. Sekerbank TAS
Performance |
Timeline |
Tofas Turk Otomobil |
Sekerbank TAS |
Tofas Turk and Sekerbank TAS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tofas Turk and Sekerbank TAS
The main advantage of trading using opposite Tofas Turk and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS's long position.The idea behind Tofas Turk Otomobil and Sekerbank TAS 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.Sekerbank TAS vs. Aksa Akrilik Kimya | Sekerbank TAS vs. Tofas Turk Otomobil | Sekerbank TAS vs. AK Sigorta AS | Sekerbank TAS vs. Is Yatirim Menkul |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |