Correlation Between Ford Otomotiv and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Margun Enerji 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 Margun Enerji 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 Margun Enerji Uretim, you can compare the effects of market volatilities on Ford Otomotiv and Margun Enerji 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 Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Margun Enerji.
Diversification Opportunities for Ford Otomotiv and Margun Enerji
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Margun is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Margun Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Margun Enerji Uretim 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 Margun Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Margun Enerji Uretim has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Margun Enerji go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Margun Enerji
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to generate 1.57 times more return on investment than Margun Enerji. However, Ford Otomotiv is 1.57 times more volatile than Margun Enerji Uretim. It trades about 0.01 of its potential returns per unit of risk. Margun Enerji Uretim is currently generating about -0.15 per unit of risk. If you would invest 100,078 in Ford Otomotiv Sanayi on August 26, 2024 and sell it today you would earn a total of 22.00 from holding Ford Otomotiv Sanayi or generate 0.02% 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. Margun Enerji Uretim
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Margun Enerji Uretim |
Ford Otomotiv and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Margun Enerji
The main advantage of trading using opposite Ford Otomotiv and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Margun Enerji 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 Margun Enerji will offset losses from the drop in Margun Enerji's long position.| Ford Otomotiv vs. Qnb Finansbank AS | Ford Otomotiv vs. Kent Gida Maddeleri | Ford Otomotiv vs. QNB Finans Finansal | Ford Otomotiv vs. Turkiye Kalkinma Bankasi |
| Margun Enerji vs. Turkish Airlines | Margun Enerji vs. Koc Holding AS | Margun Enerji vs. Ford Otomotiv Sanayi | Margun Enerji vs. Turkiye Petrol Rafinerileri |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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