Correlation Between Bosch Fren and Galatasaray Sportif
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Galatasaray Sportif 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 Galatasaray Sportif 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 Galatasaray Sportif Sinai, you can compare the effects of market volatilities on Bosch Fren and Galatasaray Sportif 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 Galatasaray Sportif. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Galatasaray Sportif.
Diversification Opportunities for Bosch Fren and Galatasaray Sportif
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bosch and Galatasaray is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Galatasaray Sportif Sinai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Galatasaray Sportif Sinai 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 Galatasaray Sportif. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Galatasaray Sportif Sinai has no effect on the direction of Bosch Fren i.e., Bosch Fren and Galatasaray Sportif go up and down completely randomly.
Pair Corralation between Bosch Fren and Galatasaray Sportif
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to under-perform the Galatasaray Sportif. But the stock apears to be less risky and, when comparing its historical volatility, Bosch Fren Sistemleri is 1.4 times less risky than Galatasaray Sportif. The stock trades about -0.38 of its potential returns per unit of risk. The Galatasaray Sportif Sinai is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 694.00 in Galatasaray Sportif Sinai on September 15, 2024 and sell it today you would lose (40.00) from holding Galatasaray Sportif Sinai or give up 5.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Galatasaray Sportif Sinai
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Galatasaray Sportif Sinai |
Bosch Fren and Galatasaray Sportif Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Galatasaray Sportif
The main advantage of trading using opposite Bosch Fren and Galatasaray Sportif positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Galatasaray Sportif 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 Galatasaray Sportif will offset losses from the drop in Galatasaray Sportif's long position.| Bosch Fren vs. Galatasaray Sportif Sinai | Bosch Fren vs. MEGA METAL | Bosch Fren vs. Gentas Genel Metal | Bosch Fren vs. Koza Anadolu Metal |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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