Correlation Between Bosch Fren and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Eminis Ambalaj 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 Eminis Ambalaj 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 Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Bosch Fren and Eminis Ambalaj 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 Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Eminis Ambalaj.
Diversification Opportunities for Bosch Fren and Eminis Ambalaj
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bosch and Eminis is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj Sanayi 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 Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Bosch Fren i.e., Bosch Fren and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between Bosch Fren and Eminis Ambalaj
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to generate about the same return on investment as Eminis Ambalaj Sanayi. But, Bosch Fren Sistemleri is 2.88 times less risky than Eminis Ambalaj. It trades about -0.09 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about -0.03 per unit of risk. If you would invest 25,000 in Eminis Ambalaj Sanayi on October 24, 2024 and sell it today you would lose (800.00) from holding Eminis Ambalaj Sanayi or give up 3.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Eminis Ambalaj Sanayi
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Eminis Ambalaj Sanayi |
Bosch Fren and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Eminis Ambalaj
The main advantage of trading using opposite Bosch Fren and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Eminis Ambalaj 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 Eminis Ambalaj will offset losses from the drop in Eminis Ambalaj's long position.| Bosch Fren vs. Turkiye Kalkinma Bankasi | Bosch Fren vs. Silverline Endustri ve | Bosch Fren vs. Cuhadaroglu Metal Sanayi | Bosch Fren vs. Borlease Otomotiv AS |
| Eminis Ambalaj vs. Politeknik Metal Sanayi | Eminis Ambalaj vs. KOC METALURJI | Eminis Ambalaj vs. Bms Birlesik Metal | Eminis Ambalaj vs. Sekerbank TAS |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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