Correlation Between Ford Otomotiv and KOC METALURJI
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and KOC METALURJI 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 KOC METALURJI 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 KOC METALURJI, you can compare the effects of market volatilities on Ford Otomotiv and KOC METALURJI 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 KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and KOC METALURJI.
Diversification Opportunities for Ford Otomotiv and KOC METALURJI
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and KOC is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI 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 KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and KOC METALURJI go up and down completely randomly.
Pair Corralation between Ford Otomotiv and KOC METALURJI
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to under-perform the KOC METALURJI. But the stock apears to be less risky and, when comparing its historical volatility, Ford Otomotiv Sanayi is 2.82 times less risky than KOC METALURJI. The stock trades about -0.35 of its potential returns per unit of risk. The KOC METALURJI is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,633 in KOC METALURJI on October 17, 2024 and sell it today you would lose (35.00) from holding KOC METALURJI or give up 2.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. KOC METALURJI
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| KOC METALURJI |
Ford Otomotiv and KOC METALURJI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and KOC METALURJI
The main advantage of trading using opposite Ford Otomotiv and KOC METALURJI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, KOC METALURJI 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 KOC METALURJI will offset losses from the drop in KOC METALURJI'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 |
| KOC METALURJI vs. SASA Polyester Sanayi | KOC METALURJI vs. Turkish Airlines | KOC METALURJI vs. Koc Holding AS | KOC METALURJI 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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