Correlation Between Tofas Turk and Demisas Dokum
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Demisas Dokum 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 Demisas Dokum 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 Demisas Dokum Emaye, you can compare the effects of market volatilities on Tofas Turk and Demisas Dokum 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 Demisas Dokum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Demisas Dokum.
Diversification Opportunities for Tofas Turk and Demisas Dokum
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tofas and Demisas is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Demisas Dokum Emaye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Demisas Dokum Emaye 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 Demisas Dokum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Demisas Dokum Emaye has no effect on the direction of Tofas Turk i.e., Tofas Turk and Demisas Dokum go up and down completely randomly.
Pair Corralation between Tofas Turk and Demisas Dokum
Assuming the 90 days trading horizon Tofas Turk Otomobil is expected to generate 0.43 times more return on investment than Demisas Dokum. However, Tofas Turk Otomobil is 2.32 times less risky than Demisas Dokum. It trades about -0.1 of its potential returns per unit of risk. Demisas Dokum Emaye is currently generating about -0.16 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 (1,120) from holding Tofas Turk Otomobil or give up 5.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Demisas Dokum Emaye
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Demisas Dokum Emaye |
Tofas Turk and Demisas Dokum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Demisas Dokum
The main advantage of trading using opposite Tofas Turk and Demisas Dokum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Demisas Dokum 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 Demisas Dokum will offset losses from the drop in Demisas Dokum'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 |
| Demisas Dokum vs. Koza Altin Isletmeleri | Demisas Dokum vs. Ipek Dogal Enerji | Demisas Dokum vs. Petkim Petrokimya Holding | Demisas Dokum vs. Kardemir Karabuk Demir |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |