Correlation Between Cuhadaroglu Metal and Bosch Fren
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Bosch Fren 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 Cuhadaroglu Metal and Bosch Fren into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Bosch Fren Sistemleri, you can compare the effects of market volatilities on Cuhadaroglu Metal and Bosch Fren 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 Cuhadaroglu Metal with a short position of Bosch Fren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Bosch Fren.
Diversification Opportunities for Cuhadaroglu Metal and Bosch Fren
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cuhadaroglu and Bosch is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Bosch Fren Sistemleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bosch Fren Sistemleri and Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi are associated (or correlated) with Bosch Fren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bosch Fren Sistemleri has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Bosch Fren go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Bosch Fren
Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to under-perform the Bosch Fren. In addition to that, Cuhadaroglu Metal is 1.72 times more volatile than Bosch Fren Sistemleri. It trades about -0.19 of its total potential returns per unit of risk. Bosch Fren Sistemleri is currently generating about -0.08 per unit of volatility. If you would invest 68,050 in Bosch Fren Sistemleri on October 21, 2024 and sell it today you would lose (1,450) from holding Bosch Fren Sistemleri or give up 2.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Bosch Fren Sistemleri
Performance |
| Timeline |
| Cuhadaroglu Metal Sanayi |
| Bosch Fren Sistemleri |
Cuhadaroglu Metal and Bosch Fren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuhadaroglu Metal and Bosch Fren
The main advantage of trading using opposite Cuhadaroglu Metal and Bosch Fren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Bosch Fren 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 Bosch Fren will offset losses from the drop in Bosch Fren's long position.| Cuhadaroglu Metal vs. Datagate Bilgisayar Malzemeleri | Cuhadaroglu Metal vs. ICBC Turkey Bank | Cuhadaroglu Metal vs. Turkish Airlines | Cuhadaroglu Metal vs. MEGA METAL |
| Bosch Fren vs. Cuhadaroglu Metal Sanayi | Bosch Fren vs. Sodas Sodyum Sanayi | Bosch Fren vs. Trabzonspor Sportif Yatirim | Bosch Fren vs. Sekerbank TAS |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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