Correlation Between Bosch Fren and Albaraka Turk
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Albaraka Turk 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 Bosch Fren and Albaraka Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bosch Fren Sistemleri and Albaraka Turk Katilim, you can compare the effects of market volatilities on Bosch Fren and Albaraka Turk 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 Bosch Fren with a short position of Albaraka Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Albaraka Turk.
Diversification Opportunities for Bosch Fren and Albaraka Turk
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bosch and Albaraka is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Albaraka Turk Katilim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Albaraka Turk Katilim and Bosch Fren 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 Bosch Fren Sistemleri are associated (or correlated) with Albaraka Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Albaraka Turk Katilim has no effect on the direction of Bosch Fren i.e., Bosch Fren and Albaraka Turk go up and down completely randomly.
Pair Corralation between Bosch Fren and Albaraka Turk
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to under-perform the Albaraka Turk. In addition to that, Bosch Fren is 1.38 times more volatile than Albaraka Turk Katilim. It trades about -0.02 of its total potential returns per unit of risk. Albaraka Turk Katilim is currently generating about 0.08 per unit of volatility. If you would invest 406.00 in Albaraka Turk Katilim on September 14, 2024 and sell it today you would earn a total of 214.00 from holding Albaraka Turk Katilim or generate 52.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Albaraka Turk Katilim
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Albaraka Turk Katilim |
Bosch Fren and Albaraka Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Albaraka Turk
The main advantage of trading using opposite Bosch Fren and Albaraka Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Albaraka Turk 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 Albaraka Turk will offset losses from the drop in Albaraka Turk's long position.| Bosch Fren vs. Politeknik Metal Sanayi | Bosch Fren vs. Bms Birlesik Metal | Bosch Fren vs. Cuhadaroglu Metal Sanayi | Bosch Fren vs. MEGA METAL |
| Albaraka Turk vs. Pamel Yenilenebilir Elektrik | Albaraka Turk vs. Bosch Fren Sistemleri | Albaraka Turk vs. Marka Yatirim Holding | Albaraka Turk vs. Dogus Gayrimenkul Yatirim |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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