Correlation Between Petkim Petrokimya and Ford Otomotiv
Can any of the company-specific risk be diversified away by investing in both Petkim Petrokimya 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 Petkim Petrokimya and Ford Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petkim Petrokimya Holding and Ford Otomotiv Sanayi, you can compare the effects of market volatilities on Petkim Petrokimya 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 Petkim Petrokimya with a short position of Ford Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petkim Petrokimya and Ford Otomotiv.
Diversification Opportunities for Petkim Petrokimya and Ford Otomotiv
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Petkim and Ford is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Petkim Petrokimya Holding 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 Petkim Petrokimya 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 Petkim Petrokimya Holding 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 Petkim Petrokimya i.e., Petkim Petrokimya and Ford Otomotiv go up and down completely randomly.
Pair Corralation between Petkim Petrokimya and Ford Otomotiv
Assuming the 90 days trading horizon Petkim Petrokimya is expected to generate 1.69 times less return on investment than Ford Otomotiv. In addition to that, Petkim Petrokimya is 1.16 times more volatile than Ford Otomotiv Sanayi. It trades about 0.03 of its total potential returns per unit of risk. Ford Otomotiv Sanayi is currently generating about 0.06 per unit of volatility. If you would invest 63,014 in Ford Otomotiv Sanayi on September 2, 2024 and sell it today you would earn a total of 33,686 from holding Ford Otomotiv Sanayi or generate 53.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petkim Petrokimya Holding vs. Ford Otomotiv Sanayi
Performance |
| Timeline |
| Petkim Petrokimya Holding |
| Ford Otomotiv Sanayi |
Petkim Petrokimya and Ford Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petkim Petrokimya and Ford Otomotiv
The main advantage of trading using opposite Petkim Petrokimya and Ford Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petkim Petrokimya 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.| Petkim Petrokimya vs. Turkiye Petrol Rafinerileri | Petkim Petrokimya vs. Aselsan Elektronik Sanayi | Petkim Petrokimya vs. Eregli Demir ve | Petkim Petrokimya vs. Turkish Airlines |
| 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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