Correlation Between Federal Mogul and Birikim Varlik
Can any of the company-specific risk be diversified away by investing in both Federal Mogul and Birikim Varlik 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 Federal Mogul and Birikim Varlik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal Mogul Izmit and Birikim Varlik Yonetim, you can compare the effects of market volatilities on Federal Mogul and Birikim Varlik 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 Federal Mogul with a short position of Birikim Varlik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Mogul and Birikim Varlik.
Diversification Opportunities for Federal Mogul and Birikim Varlik
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Federal and Birikim is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Federal Mogul Izmit and Birikim Varlik Yonetim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birikim Varlik Yonetim and Federal Mogul 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 Federal Mogul Izmit are associated (or correlated) with Birikim Varlik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birikim Varlik Yonetim has no effect on the direction of Federal Mogul i.e., Federal Mogul and Birikim Varlik go up and down completely randomly.
Pair Corralation between Federal Mogul and Birikim Varlik
Assuming the 90 days trading horizon Federal Mogul is expected to generate 2.47 times less return on investment than Birikim Varlik. But when comparing it to its historical volatility, Federal Mogul Izmit is 1.08 times less risky than Birikim Varlik. It trades about 0.02 of its potential returns per unit of risk. Birikim Varlik Yonetim is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,720 in Birikim Varlik Yonetim on September 2, 2024 and sell it today you would earn a total of 355.00 from holding Birikim Varlik Yonetim or generate 7.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Mogul Izmit vs. Birikim Varlik Yonetim
Performance |
| Timeline |
| Federal Mogul Izmit |
| Birikim Varlik Yonetim |
Federal Mogul and Birikim Varlik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Mogul and Birikim Varlik
The main advantage of trading using opposite Federal Mogul and Birikim Varlik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Mogul position performs unexpectedly, Birikim Varlik 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 Birikim Varlik will offset losses from the drop in Birikim Varlik's long position.| Federal Mogul vs. Ford Otomotiv Sanayi | Federal Mogul vs. Eregli Demir ve | Federal Mogul vs. Turkiye Petrol Rafinerileri | Federal Mogul vs. Turkiye Sise ve |
| Birikim Varlik vs. Verusa Holding AS | Birikim Varlik vs. Guler Yatirim Holding | Birikim Varlik vs. Verusaturk Girisim Sermayesi | Birikim Varlik vs. Yesil Yatirim Holding |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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