Correlation Between Ford Otomotiv and BIM Birlesik
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and BIM Birlesik 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 BIM Birlesik 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 BIM Birlesik Magazalar, you can compare the effects of market volatilities on Ford Otomotiv and BIM Birlesik 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 BIM Birlesik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and BIM Birlesik.
Diversification Opportunities for Ford Otomotiv and BIM Birlesik
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and BIM is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and BIM Birlesik Magazalar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIM Birlesik Magazalar 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 BIM Birlesik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIM Birlesik Magazalar has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and BIM Birlesik go up and down completely randomly.
Pair Corralation between Ford Otomotiv and BIM Birlesik
Assuming the 90 days trading horizon Ford Otomotiv is expected to generate 1.86 times less return on investment than BIM Birlesik. In addition to that, Ford Otomotiv is 1.01 times more volatile than BIM Birlesik Magazalar. It trades about 0.02 of its total potential returns per unit of risk. BIM Birlesik Magazalar is currently generating about 0.03 per unit of volatility. If you would invest 47,275 in BIM Birlesik Magazalar on August 28, 2024 and sell it today you would earn a total of 550.00 from holding BIM Birlesik Magazalar or generate 1.16% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ford Otomotiv Sanayi vs. BIM Birlesik Magazalar
Performance |
Timeline |
Ford Otomotiv Sanayi |
BIM Birlesik Magazalar |
Ford Otomotiv and BIM Birlesik Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ford Otomotiv and BIM Birlesik
The main advantage of trading using opposite Ford Otomotiv and BIM Birlesik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, BIM Birlesik 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 BIM Birlesik will offset losses from the drop in BIM Birlesik's long position.Ford Otomotiv vs. Qnb Finansbank AS | Ford Otomotiv vs. Kent Gida Maddeleri | Ford Otomotiv vs. QNB Finans Finansal | Ford Otomotiv vs. Turkiye Kalkinma Bankasi |
BIM Birlesik vs. Eregli Demir ve | BIM Birlesik vs. Turkiye Petrol Rafinerileri | BIM Birlesik vs. Turkiye Sise ve | BIM Birlesik vs. Ford Otomotiv Sanayi |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |