Correlation Between Ford Otomotiv and Atlas Menkul
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Atlas Menkul 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 Atlas Menkul 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 Atlas Menkul Kiymetler, you can compare the effects of market volatilities on Ford Otomotiv and Atlas Menkul 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 Atlas Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Atlas Menkul.
Diversification Opportunities for Ford Otomotiv and Atlas Menkul
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ford and Atlas is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Atlas Menkul Kiymetler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlas Menkul Kiymetler 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 Atlas Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlas Menkul Kiymetler has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Atlas Menkul go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Atlas Menkul
Assuming the 90 days trading horizon Ford Otomotiv is expected to generate 2.08 times less return on investment than Atlas Menkul. In addition to that, Ford Otomotiv is 1.2 times more volatile than Atlas Menkul Kiymetler. It trades about 0.02 of its total potential returns per unit of risk. Atlas Menkul Kiymetler is currently generating about 0.06 per unit of volatility. If you would invest 576.00 in Atlas Menkul Kiymetler on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Atlas Menkul Kiymetler or generate 2.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. Atlas Menkul Kiymetler
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Atlas Menkul Kiymetler |
Ford Otomotiv and Atlas Menkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Atlas Menkul
The main advantage of trading using opposite Ford Otomotiv and Atlas Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Atlas Menkul 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 Atlas Menkul will offset losses from the drop in Atlas Menkul'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 |
| Atlas Menkul vs. Borlease Otomotiv AS | Atlas Menkul vs. MEGA METAL | Atlas Menkul vs. Politeknik Metal Sanayi | Atlas Menkul vs. Galatasaray Sportif Sinai |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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