Correlation Between Ford Otomotiv and Kent Gida
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Ford Otomotiv and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Kent Gida.
Diversification Opportunities for Ford Otomotiv and Kent Gida
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Kent is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Kent Gida go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Kent Gida
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to generate 0.73 times more return on investment than Kent Gida. However, Ford Otomotiv Sanayi is 1.38 times less risky than Kent Gida. It trades about 0.03 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about -0.1 per unit of risk. If you would invest 94,408 in Ford Otomotiv Sanayi on September 2, 2024 and sell it today you would earn a total of 2,292 from holding Ford Otomotiv Sanayi or generate 2.43% 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. Kent Gida Maddeleri
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Kent Gida Maddeleri |
Ford Otomotiv and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Kent Gida
The main advantage of trading using opposite Ford Otomotiv and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida'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 |
| Kent Gida vs. Akbank TAS | Kent Gida vs. Bms Birlesik Metal | Kent Gida vs. Turkiye Kalkinma Bankasi | Kent Gida vs. Koza Anadolu Metal |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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