Correlation Between Federal Mogul and Inveo Yatirim
Can any of the company-specific risk be diversified away by investing in both Federal Mogul and Inveo Yatirim 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 Inveo Yatirim 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 Inveo Yatirim Holding, you can compare the effects of market volatilities on Federal Mogul and Inveo Yatirim 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 Inveo Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Mogul and Inveo Yatirim.
Diversification Opportunities for Federal Mogul and Inveo Yatirim
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Federal and Inveo is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Federal Mogul Izmit and Inveo Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inveo Yatirim Holding 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 Inveo Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inveo Yatirim Holding has no effect on the direction of Federal Mogul i.e., Federal Mogul and Inveo Yatirim go up and down completely randomly.
Pair Corralation between Federal Mogul and Inveo Yatirim
Assuming the 90 days trading horizon Federal Mogul Izmit is expected to generate 1.1 times more return on investment than Inveo Yatirim. However, Federal Mogul is 1.1 times more volatile than Inveo Yatirim Holding. It trades about 0.02 of its potential returns per unit of risk. Inveo Yatirim Holding is currently generating about -0.04 per unit of risk. If you would invest 30,125 in Federal Mogul Izmit on September 2, 2024 and sell it today you would earn a total of 475.00 from holding Federal Mogul Izmit or generate 1.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal Mogul Izmit vs. Inveo Yatirim Holding
Performance |
| Timeline |
| Federal Mogul Izmit |
| Inveo Yatirim Holding |
Federal Mogul and Inveo Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal Mogul and Inveo Yatirim
The main advantage of trading using opposite Federal Mogul and Inveo Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal Mogul position performs unexpectedly, Inveo Yatirim 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 Inveo Yatirim will offset losses from the drop in Inveo Yatirim'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 |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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