Correlation Between Bosch Fren and Verusa Holding
Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Verusa Holding 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 Verusa Holding 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 Verusa Holding AS, you can compare the effects of market volatilities on Bosch Fren and Verusa Holding 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 Verusa Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Verusa Holding.
Diversification Opportunities for Bosch Fren and Verusa Holding
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bosch and Verusa is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Verusa Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Verusa Holding AS 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 Verusa Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Verusa Holding AS has no effect on the direction of Bosch Fren i.e., Bosch Fren and Verusa Holding go up and down completely randomly.
Pair Corralation between Bosch Fren and Verusa Holding
Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to generate 13.98 times more return on investment than Verusa Holding. However, Bosch Fren is 13.98 times more volatile than Verusa Holding AS. It trades about 0.05 of its potential returns per unit of risk. Verusa Holding AS is currently generating about 0.07 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 | 99.8% |
| Values | Daily Returns |
Bosch Fren Sistemleri vs. Verusa Holding AS
Performance |
| Timeline |
| Bosch Fren Sistemleri |
| Verusa Holding AS |
Bosch Fren and Verusa Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bosch Fren and Verusa Holding
The main advantage of trading using opposite Bosch Fren and Verusa Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Verusa Holding 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 Verusa Holding will offset losses from the drop in Verusa Holding'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 |
| Verusa Holding vs. Pamel Yenilenebilir Elektrik | Verusa Holding vs. Bosch Fren Sistemleri | Verusa Holding vs. Marka Yatirim Holding | Verusa Holding 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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