Correlation Between Celebi Hava and Otokar Otomotiv
Can any of the company-specific risk be diversified away by investing in both Celebi Hava and Otokar Otomotiv 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 Celebi Hava and Otokar Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Celebi Hava Servisi and Otokar Otomotiv ve, you can compare the effects of market volatilities on Celebi Hava and Otokar Otomotiv 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 Celebi Hava with a short position of Otokar Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celebi Hava and Otokar Otomotiv.
Diversification Opportunities for Celebi Hava and Otokar Otomotiv
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Celebi and Otokar is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Celebi Hava Servisi and Otokar Otomotiv ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Otokar Otomotiv ve and Celebi Hava 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 Celebi Hava Servisi are associated (or correlated) with Otokar Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Otokar Otomotiv ve has no effect on the direction of Celebi Hava i.e., Celebi Hava and Otokar Otomotiv go up and down completely randomly.
Pair Corralation between Celebi Hava and Otokar Otomotiv
Assuming the 90 days trading horizon Celebi Hava is expected to generate 2.7 times less return on investment than Otokar Otomotiv. But when comparing it to its historical volatility, Celebi Hava Servisi is 5.16 times less risky than Otokar Otomotiv. It trades about 0.09 of its potential returns per unit of risk. Otokar Otomotiv ve is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 18,349 in Otokar Otomotiv ve on August 28, 2024 and sell it today you would earn a total of 26,976 from holding Otokar Otomotiv ve or generate 147.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Celebi Hava Servisi vs. Otokar Otomotiv ve
Performance |
| Timeline |
| Celebi Hava Servisi |
| Otokar Otomotiv ve |
Celebi Hava and Otokar Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Celebi Hava and Otokar Otomotiv
The main advantage of trading using opposite Celebi Hava and Otokar Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Celebi Hava position performs unexpectedly, Otokar Otomotiv 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 Otokar Otomotiv will offset losses from the drop in Otokar Otomotiv's long position.| Celebi Hava vs. QNB Finans Finansal | Celebi Hava vs. Pamel Yenilenebilir Elektrik | Celebi Hava vs. Brisa Bridgestone Sabanci | Celebi Hava vs. Dogus Gayrimenkul Yatirim |
| Otokar Otomotiv vs. QNB Finans Finansal | Otokar Otomotiv vs. Pamel Yenilenebilir Elektrik | Otokar Otomotiv vs. Brisa Bridgestone Sabanci | Otokar Otomotiv 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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