Correlation Between Hektas Ticaret and Tofas Turk
Can any of the company-specific risk be diversified away by investing in both Hektas Ticaret 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 Hektas Ticaret and Tofas Turk 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 Tofas Turk Otomobil, you can compare the effects of market volatilities on Hektas Ticaret 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 Hektas Ticaret with a short position of Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hektas Ticaret and Tofas Turk.
Diversification Opportunities for Hektas Ticaret and Tofas Turk
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hektas and Tofas is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Hektas Ticaret TAS 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 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 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 Hektas Ticaret i.e., Hektas Ticaret and Tofas Turk go up and down completely randomly.
Pair Corralation between Hektas Ticaret and Tofas Turk
Assuming the 90 days trading horizon Hektas Ticaret TAS is expected to generate 1.08 times more return on investment than Tofas Turk. However, Hektas Ticaret is 1.08 times more volatile than Tofas Turk Otomobil. It trades about -0.06 of its potential returns per unit of risk. Tofas Turk Otomobil is currently generating about -0.12 per unit of risk. If you would invest 525.00 in Hektas Ticaret TAS on August 29, 2024 and sell it today you would lose (121.00) from holding Hektas Ticaret TAS or give up 23.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hektas Ticaret TAS vs. Tofas Turk Otomobil
Performance |
| Timeline |
| Hektas Ticaret TAS |
| Tofas Turk Otomobil |
Hektas Ticaret and Tofas Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hektas Ticaret and Tofas Turk
The main advantage of trading using opposite Hektas Ticaret and Tofas Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hektas Ticaret 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.| Hektas Ticaret vs. SASA Polyester Sanayi | Hektas Ticaret vs. Eregli Demir ve | Hektas Ticaret vs. Turkiye Sise ve | Hektas Ticaret vs. Ford Otomotiv Sanayi |
| 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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