Correlation Between Ford Otomotiv and Tofas Turk
Can any of the company-specific risk be diversified away by investing in both Ford Otomotiv and Tofas Turk 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 Tofas Turk 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 Tofas Turk Otomobil, you can compare the effects of market volatilities on Ford Otomotiv and Tofas Turk 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 Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford Otomotiv and Tofas Turk.
Diversification Opportunities for Ford Otomotiv and Tofas Turk
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ford and Tofas is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ford Otomotiv Sanayi and Tofas Turk Otomobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tofas Turk Otomobil 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 Tofas Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tofas Turk Otomobil has no effect on the direction of Ford Otomotiv i.e., Ford Otomotiv and Tofas Turk go up and down completely randomly.
Pair Corralation between Ford Otomotiv and Tofas Turk
Assuming the 90 days trading horizon Ford Otomotiv Sanayi is expected to generate 0.89 times more return on investment than Tofas Turk. However, Ford Otomotiv Sanayi is 1.13 times less risky than Tofas Turk. It trades about 0.02 of its potential returns per unit of risk. Tofas Turk Otomobil is currently generating about 0.0 per unit of risk. If you would invest 88,725 in Ford Otomotiv Sanayi on November 4, 2024 and sell it today you would earn a total of 4,225 from holding Ford Otomotiv Sanayi or generate 4.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ford Otomotiv Sanayi vs. Tofas Turk Otomobil
Performance |
| Timeline |
| Ford Otomotiv Sanayi |
| Tofas Turk Otomobil |
Ford Otomotiv and Tofas Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ford Otomotiv and Tofas Turk
The main advantage of trading using opposite Ford Otomotiv and Tofas Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ford Otomotiv position performs unexpectedly, Tofas Turk 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 Tofas Turk will offset losses from the drop in Tofas Turk'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 |
| Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Petrol Rafinerileri | Tofas Turk vs. Turkiye Sise ve |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |