Correlation Between Ford Otomotiv and Imas Makina
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Imas Makina 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 Imas Makina 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 Imas Makina Sanayi, you can compare the effects of market volatilities on Ford Otomotiv and Imas Makina 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 Imas Makina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Imas Makina.
Diversification Opportunities for Ford Otomotiv and Imas Makina
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ford and Imas is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Imas Makina Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imas Makina Sanayi 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 Imas Makina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imas Makina Sanayi has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Imas Makina go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Imas Makina
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to under-perform the Imas Makina. But the stock apears to be less risky and, when comparing its historical volatility, Ford Otomotiv Sanayi is 1.44 times less risky than Imas Makina. The stock trades about -0.13 of its potential returns per unit of risk. The Imas Makina Sanayi is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 275.00 in Imas Makina Sanayi on September 13, 2024 and sell it today you would earn a total of 25.00 from holding Imas Makina Sanayi or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. Imas Makina Sanayi
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Imas Makina Sanayi |
Ford Otomotiv and Imas Makina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Imas Makina
The main advantage of trading using opposite Ford Otomotiv and Imas Makina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Imas Makina 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 Imas Makina will offset losses from the drop in Imas Makina's long position.| Ford Otomotiv vs. QNB Finans Finansal | Ford Otomotiv vs. Pamel Yenilenebilir Elektrik | Ford Otomotiv vs. IZDEMIR Enerji Elektrik | Ford Otomotiv vs. Logo Yazilim Sanayi |
| Imas Makina vs. Koza Anadolu Metal | Imas Makina vs. E Data Teknoloji Pazarlama | Imas Makina vs. Cuhadaroglu Metal Sanayi | Imas Makina vs. Creditwest Faktoring 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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