Correlation Between Ford Otomotiv and Hedef Holdings
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Hedef Holdings 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 Hedef Holdings 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 Hedef Holdings AS, you can compare the effects of market volatilities on Ford Otomotiv and Hedef Holdings 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 Hedef Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Hedef Holdings.
Diversification Opportunities for Ford Otomotiv and Hedef Holdings
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ford and Hedef is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Hedef Holdings AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Holdings AS 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 Hedef Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Holdings AS has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Hedef Holdings go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Hedef Holdings
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to under-perform the Hedef Holdings. In addition to that, Ford Otomotiv is 1.21 times more volatile than Hedef Holdings AS. It trades about -0.11 of its total potential returns per unit of risk. Hedef Holdings AS is currently generating about 0.07 per unit of volatility. If you would invest 303.00 in Hedef Holdings AS on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Hedef Holdings AS or generate 2.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. Hedef Holdings AS
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Hedef Holdings AS |
Ford Otomotiv and Hedef Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Hedef Holdings
The main advantage of trading using opposite Ford Otomotiv and Hedef Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Hedef Holdings 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 Hedef Holdings will offset losses from the drop in Hedef Holdings' 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 |
| Hedef Holdings vs. Verusa Holding AS | Hedef Holdings vs. GSD Holding AS | Hedef Holdings vs. Guler Yatirim Holding | Hedef Holdings vs. Verusaturk Girisim Sermayesi |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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