Correlation Between Bosch Fren and Verusaturk Girisim
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Verusaturk Girisim 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 Verusaturk Girisim 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 Verusaturk Girisim Sermayesi, you can compare the effects of market volatilities on Bosch Fren and Verusaturk Girisim 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 Verusaturk Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Verusaturk Girisim.
Diversification Opportunities for Bosch Fren and Verusaturk Girisim
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bosch and Verusaturk is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Verusaturk Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusaturk Girisim 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 Verusaturk Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusaturk Girisim has no effect on the direction of Bosch Fren i.e., Bosch Fren and Verusaturk Girisim go up and down completely randomly.
Pair Corralation between Bosch Fren and Verusaturk Girisim
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to generate 13.14 times more return on investment than Verusaturk Girisim. However, Bosch Fren is 13.14 times more volatile than Verusaturk Girisim Sermayesi. It trades about 0.05 of its potential returns per unit of risk. Verusaturk Girisim Sermayesi is currently generating about 0.01 per unit of risk. If you would invest 34,144 in Bosch Fren Sistemleri on September 14, 2024 and sell it today you would earn a total of 34,806 from holding Bosch Fren Sistemleri or generate 101.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Verusaturk Girisim Sermayesi
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Verusaturk Girisim |
Bosch Fren and Verusaturk Girisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Verusaturk Girisim
The main advantage of trading using opposite Bosch Fren and Verusaturk Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Verusaturk Girisim 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 Verusaturk Girisim will offset losses from the drop in Verusaturk Girisim's long position.| Bosch Fren vs. Politeknik Metal Sanayi | Bosch Fren vs. Bms Birlesik Metal | Bosch Fren vs. Cuhadaroglu Metal Sanayi | Bosch Fren vs. MEGA METAL |
| Verusaturk Girisim vs. Pamel Yenilenebilir Elektrik | Verusaturk Girisim vs. Bosch Fren Sistemleri | Verusaturk Girisim vs. Marka Yatirim Holding | Verusaturk Girisim 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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