Correlation Between Ford Otomotiv and Turkiye Garanti
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Turkiye Garanti 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 Turkiye Garanti 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 Turkiye Garanti Bankasi, you can compare the effects of market volatilities on Ford Otomotiv and Turkiye Garanti 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 Turkiye Garanti. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Turkiye Garanti.
Diversification Opportunities for Ford Otomotiv and Turkiye Garanti
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ford and Turkiye is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Turkiye Garanti Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Garanti Bankasi 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 Turkiye Garanti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Garanti Bankasi has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Turkiye Garanti go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Turkiye Garanti
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to generate 0.98 times more return on investment than Turkiye Garanti. However, Ford Otomotiv Sanayi is 1.03 times less risky than Turkiye Garanti. It trades about 0.08 of its potential returns per unit of risk. Turkiye Garanti Bankasi is currently generating about -0.01 per unit of risk. If you would invest 90,514 in Ford Otomotiv Sanayi on August 30, 2024 and sell it today you would earn a total of 6,786 from holding Ford Otomotiv Sanayi or generate 7.5% 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. Turkiye Garanti Bankasi
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Turkiye Garanti Bankasi |
Ford Otomotiv and Turkiye Garanti Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Turkiye Garanti
The main advantage of trading using opposite Ford Otomotiv and Turkiye Garanti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Turkiye Garanti 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 Turkiye Garanti will offset losses from the drop in Turkiye Garanti'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 |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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