Correlation Between Ege Endustri and Ford Otomotiv
Can any of the company-specific risk be diversified away by investing in both Ege Endustri and Ford 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 Ege Endustri and Ford Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Endustri ve and Ford Otomotiv Sanayi, you can compare the effects of market volatilities on Ege Endustri and Ford 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 Ege Endustri with a short position of Ford Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and Ford Otomotiv.
Diversification Opportunities for Ege Endustri and Ford Otomotiv
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ege and Ford is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve and Ford Otomotiv Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Otomotiv Sanayi and Ege Endustri 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 Ege Endustri ve are associated (or correlated) with Ford Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Otomotiv Sanayi has no effect on the direction of Ege Endustri i.e., Ege Endustri and Ford Otomotiv go up and down completely randomly.
Pair Corralation between Ege Endustri and Ford Otomotiv
Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the Ford Otomotiv. In addition to that, Ege Endustri is 1.23 times more volatile than Ford Otomotiv Sanayi. It trades about -0.05 of its total potential returns per unit of risk. Ford Otomotiv Sanayi is currently generating about -0.02 per unit of volatility. If you would invest 110,036 in Ford Otomotiv Sanayi on August 26, 2024 and sell it today you would lose (9,936) from holding Ford Otomotiv Sanayi or give up 9.03% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Endustri ve vs. Ford Otomotiv Sanayi
Performance |
| Timeline |
| Ege Endustri ve |
| Ford Otomotiv Sanayi |
Ege Endustri and Ford Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and Ford Otomotiv
The main advantage of trading using opposite Ege Endustri and Ford Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri position performs unexpectedly, Ford 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 Ford Otomotiv will offset losses from the drop in Ford Otomotiv's long position.| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
| Ford Otomotiv vs. Qnb Finansbank AS | Ford Otomotiv vs. Kent Gida Maddeleri | Ford Otomotiv vs. QNB Finans Finansal | Ford Otomotiv vs. Turkiye Kalkinma 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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