Correlation Between Turkiye Kalkinma and Federal Mogul
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma and Federal Mogul 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 Turkiye Kalkinma and Federal Mogul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Kalkinma Bankasi and Federal Mogul Izmit, you can compare the effects of market volatilities on Turkiye Kalkinma and Federal Mogul 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 Turkiye Kalkinma with a short position of Federal Mogul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and Federal Mogul.
Diversification Opportunities for Turkiye Kalkinma and Federal Mogul
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and Federal is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi and Federal Mogul Izmit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Mogul Izmit and Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi are associated (or correlated) with Federal Mogul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Mogul Izmit has no effect on the direction of Turkiye Kalkinma i.e., Turkiye Kalkinma and Federal Mogul go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and Federal Mogul
Assuming the 90 days trading horizon Turkiye Kalkinma Bankasi is expected to under-perform the Federal Mogul. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Kalkinma Bankasi is 1.59 times less risky than Federal Mogul. The stock trades about -0.07 of its potential returns per unit of risk. The Federal Mogul Izmit is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 29,050 in Federal Mogul Izmit on September 12, 2024 and sell it today you would earn a total of 975.00 from holding Federal Mogul Izmit or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. Federal Mogul Izmit
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| Federal Mogul Izmit |
Turkiye Kalkinma and Federal Mogul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and Federal Mogul
The main advantage of trading using opposite Turkiye Kalkinma and Federal Mogul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma position performs unexpectedly, Federal Mogul 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 Federal Mogul will offset losses from the drop in Federal Mogul's long position.| Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma | Turkiye Kalkinma vs. ENKA Insaat ve |
| Federal Mogul vs. Politeknik Metal Sanayi | Federal Mogul vs. Cuhadaroglu Metal Sanayi | Federal Mogul vs. Gentas Genel Metal | Federal Mogul vs. Qnb Finansbank AS |
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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