Correlation Between Ford and Yesil Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Ford and Yesil Gayrimenkul 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 Ford and Yesil Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Motor and Yesil Gayrimenkul Yatirim, you can compare the effects of market volatilities on Ford and Yesil Gayrimenkul 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 Ford with a short position of Yesil Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Yesil Gayrimenkul.
Diversification Opportunities for Ford and Yesil Gayrimenkul
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ford and Yesil is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Yesil Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Gayrimenkul Yatirim and Ford 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 Ford Motor are associated (or correlated) with Yesil Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Gayrimenkul Yatirim has no effect on the direction of Ford i.e., Ford and Yesil Gayrimenkul go up and down completely randomly.
Pair Corralation between Ford and Yesil Gayrimenkul
Taking into account the 90-day investment horizon Ford is expected to generate 8.19 times less return on investment than Yesil Gayrimenkul. But when comparing it to its historical volatility, Ford Motor is 1.99 times less risky than Yesil Gayrimenkul. It trades about 0.03 of its potential returns per unit of risk. Yesil Gayrimenkul Yatirim is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 337.00 in Yesil Gayrimenkul Yatirim on September 2, 2024 and sell it today you would earn a total of 658.00 from holding Yesil Gayrimenkul Yatirim or generate 195.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Ford Motor vs. Yesil Gayrimenkul Yatirim
Performance |
| Timeline |
| Ford Motor |
| Yesil Gayrimenkul Yatirim |
Ford and Yesil Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford and Yesil Gayrimenkul
The main advantage of trading using opposite Ford and Yesil Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford position performs unexpectedly, Yesil Gayrimenkul 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 Yesil Gayrimenkul will offset losses from the drop in Yesil Gayrimenkul's long position.The idea behind Ford Motor and Yesil Gayrimenkul Yatirim pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Yesil Gayrimenkul vs. Bms Birlesik Metal | Yesil Gayrimenkul vs. Trabzonspor Sportif Yatirim | Yesil Gayrimenkul vs. Sekerbank TAS | Yesil Gayrimenkul vs. Gentas Genel Metal |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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