Correlation Between Bosch Fren and Atlas Menkul
Can any of the company-specific risk be diversified away by investing in both Bosch Fren 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 Bosch Fren and Atlas Menkul 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 Atlas Menkul Kiymetler, you can compare the effects of market volatilities on Bosch Fren 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 Bosch Fren with a short position of Atlas Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Atlas Menkul.
Diversification Opportunities for Bosch Fren and Atlas Menkul
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bosch and Atlas is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri 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 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 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 Bosch Fren i.e., Bosch Fren and Atlas Menkul go up and down completely randomly.
Pair Corralation between Bosch Fren and Atlas Menkul
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to under-perform the Atlas Menkul. But the stock apears to be less risky and, when comparing its historical volatility, Bosch Fren Sistemleri is 1.02 times less risky than Atlas Menkul. The stock trades about -0.03 of its potential returns per unit of risk. The Atlas Menkul Kiymetler is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 455.00 in Atlas Menkul Kiymetler on September 14, 2024 and sell it today you would earn a total of 222.00 from holding Atlas Menkul Kiymetler or generate 48.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Atlas Menkul Kiymetler
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Atlas Menkul Kiymetler |
Bosch Fren and Atlas Menkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Atlas Menkul
The main advantage of trading using opposite Bosch Fren and Atlas Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren 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.| Bosch Fren vs. Politeknik Metal Sanayi | Bosch Fren vs. Bms Birlesik Metal | Bosch Fren vs. Cuhadaroglu Metal Sanayi | Bosch Fren vs. MEGA METAL |
| Atlas Menkul vs. Akbank TAS | Atlas Menkul vs. CEO Event Medya | Atlas Menkul vs. Gentas Genel Metal | Atlas Menkul vs. Turkiye Kalkinma Bankasi |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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