Correlation Between Alkim Kagit and Federal Mogul
Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Federal Mogul 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 Alkim Kagit and Federal Mogul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkim Kagit Sanayi and Federal Mogul Izmit, you can compare the effects of market volatilities on Alkim Kagit and Federal Mogul 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 Alkim Kagit with a short position of Federal Mogul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Federal Mogul.
Diversification Opportunities for Alkim Kagit and Federal Mogul
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Alkim and Federal is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Federal Mogul Izmit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Mogul Izmit and Alkim Kagit 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 Alkim Kagit Sanayi are associated (or correlated) with Federal Mogul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Mogul Izmit has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Federal Mogul go up and down completely randomly.
Pair Corralation between Alkim Kagit and Federal Mogul
Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to under-perform the Federal Mogul. But the stock apears to be less risky and, when comparing its historical volatility, Alkim Kagit Sanayi is 1.21 times less risky than Federal Mogul. The stock trades about -0.03 of its potential returns per unit of risk. The Federal Mogul Izmit is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 30,125 in Federal Mogul Izmit on September 2, 2024 and sell it today you would earn a total of 475.00 from holding Federal Mogul Izmit or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkim Kagit Sanayi vs. Federal Mogul Izmit
Performance |
| Timeline |
| Alkim Kagit Sanayi |
| Federal Mogul Izmit |
Alkim Kagit and Federal Mogul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkim Kagit and Federal Mogul
The main advantage of trading using opposite Alkim Kagit and Federal Mogul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Kagit position performs unexpectedly, Federal Mogul 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 Federal Mogul will offset losses from the drop in Federal Mogul's long position.| Alkim Kagit vs. Sekerbank TAS | Alkim Kagit vs. Gentas Genel Metal | Alkim Kagit vs. Politeknik Metal Sanayi | Alkim Kagit vs. Cuhadaroglu Metal Sanayi |
| Federal Mogul vs. Ford Otomotiv Sanayi | Federal Mogul vs. Eregli Demir ve | Federal Mogul vs. Turkiye Petrol Rafinerileri | Federal Mogul vs. Turkiye Sise ve |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |