Correlation Between Tofas Turk and Berkosan Yalitim
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Berkosan Yalitim 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 Tofas Turk and Berkosan Yalitim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tofas Turk Otomobil and Berkosan Yalitim ve, you can compare the effects of market volatilities on Tofas Turk and Berkosan Yalitim 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 Tofas Turk with a short position of Berkosan Yalitim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Berkosan Yalitim.
Diversification Opportunities for Tofas Turk and Berkosan Yalitim
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tofas and Berkosan is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Berkosan Yalitim ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkosan Yalitim and Tofas Turk 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 Tofas Turk Otomobil are associated (or correlated) with Berkosan Yalitim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkosan Yalitim has no effect on the direction of Tofas Turk i.e., Tofas Turk and Berkosan Yalitim go up and down completely randomly.
Pair Corralation between Tofas Turk and Berkosan Yalitim
Assuming the 90 days trading horizon Tofas Turk Otomobil is expected to generate 0.98 times more return on investment than Berkosan Yalitim. However, Tofas Turk Otomobil is 1.02 times less risky than Berkosan Yalitim. It trades about -0.06 of its potential returns per unit of risk. Berkosan Yalitim ve is currently generating about -0.11 per unit of risk. If you would invest 20,900 in Tofas Turk Otomobil on November 28, 2024 and sell it today you would lose (720.00) from holding Tofas Turk Otomobil or give up 3.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Berkosan Yalitim ve
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Berkosan Yalitim |
Tofas Turk and Berkosan Yalitim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Berkosan Yalitim
The main advantage of trading using opposite Tofas Turk and Berkosan Yalitim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Berkosan Yalitim 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 Berkosan Yalitim will offset losses from the drop in Berkosan Yalitim's long position.| Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Petrol Rafinerileri | Tofas Turk vs. Turkiye Sise ve |
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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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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