Correlation Between Hektas Ticaret and Ford Otomotiv
Can any of the company-specific risk be diversified away by investing in both Hektas Ticaret and Ford Otomotiv 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 Hektas Ticaret and Ford Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hektas Ticaret TAS and Ford Otomotiv Sanayi, you can compare the effects of market volatilities on Hektas Ticaret and Ford Otomotiv 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 Hektas Ticaret with a short position of Ford Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hektas Ticaret and Ford Otomotiv.
Diversification Opportunities for Hektas Ticaret and Ford Otomotiv
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hektas and Ford is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Hektas Ticaret TAS and Ford Otomotiv Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ford Otomotiv Sanayi and Hektas Ticaret 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 Hektas Ticaret TAS are associated (or correlated) with Ford Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Otomotiv Sanayi has no effect on the direction of Hektas Ticaret i.e., Hektas Ticaret and Ford Otomotiv go up and down completely randomly.
Pair Corralation between Hektas Ticaret and Ford Otomotiv
Assuming the 90 days trading horizon Hektas Ticaret TAS is expected to generate 1.22 times more return on investment than Ford Otomotiv. However, Hektas Ticaret is 1.22 times more volatile than Ford Otomotiv Sanayi. It trades about 0.17 of its potential returns per unit of risk. Ford Otomotiv Sanayi is currently generating about 0.02 per unit of risk. If you would invest 365.00 in Hektas Ticaret TAS on August 30, 2024 and sell it today you would earn a total of 39.00 from holding Hektas Ticaret TAS or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hektas Ticaret TAS vs. Ford Otomotiv Sanayi
Performance |
| Timeline |
| Hektas Ticaret TAS |
| Ford Otomotiv Sanayi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Hektas Ticaret and Ford Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hektas Ticaret and Ford Otomotiv
The main advantage of trading using opposite Hektas Ticaret and Ford Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hektas Ticaret position performs unexpectedly, Ford Otomotiv 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 Ford Otomotiv will offset losses from the drop in Ford Otomotiv's long position.| Hektas Ticaret vs. SASA Polyester Sanayi | Hektas Ticaret vs. Eregli Demir ve | Hektas Ticaret vs. Turkiye Sise ve | Hektas Ticaret vs. Aksa Akrilik Kimya |
| Ford Otomotiv vs. Eregli Demir ve | Ford Otomotiv vs. Tofas Turk Otomobil | Ford Otomotiv vs. Turkiye Petrol Rafinerileri | Ford Otomotiv 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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