Correlation Between SASA Polyester and Ford Otomotiv
Can any of the company-specific risk be diversified away by investing in both SASA Polyester 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 SASA Polyester and Ford Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SASA Polyester Sanayi and Ford Otomotiv Sanayi, you can compare the effects of market volatilities on SASA Polyester 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 SASA Polyester with a short position of Ford Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and Ford Otomotiv.
Diversification Opportunities for SASA Polyester and Ford Otomotiv
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SASA and Ford is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi 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 SASA Polyester 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 SASA Polyester Sanayi 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 SASA Polyester i.e., SASA Polyester and Ford Otomotiv go up and down completely randomly.
Pair Corralation between SASA Polyester and Ford Otomotiv
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the Ford Otomotiv. In addition to that, SASA Polyester is 1.33 times more volatile than Ford Otomotiv Sanayi. It trades about -0.28 of its total potential returns per unit of risk. Ford Otomotiv Sanayi is currently generating about 0.01 per unit of volatility. If you would invest 94,050 in Ford Otomotiv Sanayi on November 2, 2024 and sell it today you would earn a total of 50.00 from holding Ford Otomotiv Sanayi or generate 0.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. Ford Otomotiv Sanayi
Performance |
| Timeline |
| SASA Polyester Sanayi |
| Ford Otomotiv Sanayi |
SASA Polyester and Ford Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and Ford Otomotiv
The main advantage of trading using opposite SASA Polyester and Ford Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester 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.| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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