Correlation Between Bosch Fren and Hektas Ticaret
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Hektas Ticaret 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 Hektas Ticaret 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 Hektas Ticaret TAS, you can compare the effects of market volatilities on Bosch Fren and Hektas Ticaret 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 Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Hektas Ticaret.
Diversification Opportunities for Bosch Fren and Hektas Ticaret
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Bosch and Hektas is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS 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 Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Bosch Fren i.e., Bosch Fren and Hektas Ticaret go up and down completely randomly.
Pair Corralation between Bosch Fren and Hektas Ticaret
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to under-perform the Hektas Ticaret. But the stock apears to be less risky and, when comparing its historical volatility, Bosch Fren Sistemleri is 1.13 times less risky than Hektas Ticaret. The stock trades about -0.07 of its potential returns per unit of risk. The Hektas Ticaret TAS is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 485.00 in Hektas Ticaret TAS on October 17, 2024 and sell it today you would lose (107.00) from holding Hektas Ticaret TAS or give up 22.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Hektas Ticaret TAS
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Hektas Ticaret TAS |
Bosch Fren and Hektas Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Hektas Ticaret
The main advantage of trading using opposite Bosch Fren and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Hektas Ticaret 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 Hektas Ticaret will offset losses from the drop in Hektas Ticaret's long position.| Bosch Fren vs. Koza Anadolu Metal | Bosch Fren vs. Sekerbank TAS | Bosch Fren vs. Akbank TAS | Bosch Fren vs. E Data Teknoloji Pazarlama |
| Hektas Ticaret vs. SASA Polyester Sanayi | Hektas Ticaret vs. Eregli Demir ve | Hektas Ticaret vs. Turkiye Sise ve | Hektas Ticaret vs. Ford Otomotiv Sanayi |
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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