Correlation Between Bosch Fren and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Turkiye Garanti 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 Turkiye Garanti 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 Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Bosch Fren and Turkiye Garanti 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 Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Turkiye Garanti.
Diversification Opportunities for Bosch Fren and Turkiye Garanti
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosch and Turkiye is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi 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 Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Bosch Fren i.e., Bosch Fren and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Bosch Fren and Turkiye Garanti
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to generate 14.88 times more return on investment than Turkiye Garanti. However, Bosch Fren is 14.88 times more volatile than Turkiye Garanti Bankasi. It trades about 0.05 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about 0.12 per unit of risk. If you would invest 32,842 in Bosch Fren Sistemleri on September 12, 2024 and sell it today you would earn a total of 36,308 from holding Bosch Fren Sistemleri or generate 110.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Turkiye Garanti Bankasi |
Bosch Fren and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Turkiye Garanti
The main advantage of trading using opposite Bosch Fren and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Turkiye Garanti 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 Turkiye Garanti will offset losses from the drop in Turkiye Garanti's long position.| Bosch Fren vs. Koza Anadolu Metal | Bosch Fren vs. Cuhadaroglu Metal Sanayi | Bosch Fren vs. Mackolik Internet Hizmetleri | Bosch Fren vs. MEGA METAL |
| Turkiye Garanti vs. Pamel Yenilenebilir Elektrik | Turkiye Garanti vs. Bosch Fren Sistemleri | Turkiye Garanti vs. Marka Yatirim Holding | Turkiye Garanti 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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