Correlation Between Ford Otomotiv and Akbank TAS
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Akbank TAS 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 Otomotiv and Akbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ford Otomotiv Sanayi and Akbank TAS, you can compare the effects of market volatilities on Ford Otomotiv and Akbank TAS 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 Otomotiv with a short position of Akbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Akbank TAS.
Diversification Opportunities for Ford Otomotiv and Akbank TAS
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Akbank is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Akbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank TAS and Ford Otomotiv 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 Otomotiv Sanayi are associated (or correlated) with Akbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank TAS has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Akbank TAS go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Akbank TAS
Assuming the 90 days trading horizon Ford Otomotiv is expected to generate 1.54 times less return on investment than Akbank TAS. But when comparing it to its historical volatility, Ford Otomotiv Sanayi is 1.27 times less risky than Akbank TAS. It trades about 0.08 of its potential returns per unit of risk. Akbank TAS is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,508 in Akbank TAS on August 31, 2024 and sell it today you would earn a total of 4,462 from holding Akbank TAS or generate 295.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. Akbank TAS
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Akbank TAS |
Ford Otomotiv and Akbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Akbank TAS
The main advantage of trading using opposite Ford Otomotiv and Akbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Akbank TAS 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 Akbank TAS will offset losses from the drop in Akbank TAS's long position.| Ford Otomotiv vs. Eregli Demir ve | Ford Otomotiv vs. Tofas Turk Otomobil | Ford Otomotiv vs. Turkiye Petrol Rafinerileri | Ford Otomotiv vs. Turkiye Sise ve |
| Akbank TAS vs. Turkiye Garanti Bankasi | Akbank TAS vs. Yapi ve Kredi | Akbank TAS vs. Turkiye Is Bankasi | Akbank TAS vs. Koc Holding AS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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