Correlation Between Bosch Fren and Petrokent Turizm
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Petrokent Turizm 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 Petrokent Turizm 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 Petrokent Turizm AS, you can compare the effects of market volatilities on Bosch Fren and Petrokent Turizm 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 Petrokent Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Petrokent Turizm.
Diversification Opportunities for Bosch Fren and Petrokent Turizm
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosch and Petrokent is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Petrokent Turizm AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrokent Turizm 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 Petrokent Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrokent Turizm has no effect on the direction of Bosch Fren i.e., Bosch Fren and Petrokent Turizm go up and down completely randomly.
Pair Corralation between Bosch Fren and Petrokent Turizm
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to under-perform the Petrokent Turizm. But the stock apears to be less risky and, when comparing its historical volatility, Bosch Fren Sistemleri is 1.31 times less risky than Petrokent Turizm. The stock trades about -0.06 of its potential returns per unit of risk. The Petrokent Turizm AS is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 25,500 in Petrokent Turizm AS on November 2, 2024 and sell it today you would lose (1,300) from holding Petrokent Turizm AS or give up 5.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.07% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Petrokent Turizm AS
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Petrokent Turizm |
Bosch Fren and Petrokent Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Petrokent Turizm
The main advantage of trading using opposite Bosch Fren and Petrokent Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Petrokent Turizm 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 Petrokent Turizm will offset losses from the drop in Petrokent Turizm's long position.| Bosch Fren vs. Akbank TAS | Bosch Fren vs. Haci Omer Sabanci | Bosch Fren vs. Turkiye Is Bankasi | Bosch Fren vs. Turkiye Is Bankasi |
| Petrokent Turizm vs. Akbank TAS | Petrokent Turizm vs. Haci Omer Sabanci | Petrokent Turizm vs. Turkiye Is Bankasi | Petrokent Turizm vs. Turkiye Is 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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