Correlation Between Tofas Turk and Escort Teknoloji
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Escort Teknoloji 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 Escort Teknoloji 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 Escort Teknoloji Yatirim, you can compare the effects of market volatilities on Tofas Turk and Escort Teknoloji 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 Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Escort Teknoloji.
Diversification Opportunities for Tofas Turk and Escort Teknoloji
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tofas and Escort is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji Yatirim 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 Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of Tofas Turk i.e., Tofas Turk and Escort Teknoloji go up and down completely randomly.
Pair Corralation between Tofas Turk and Escort Teknoloji
Assuming the 90 days trading horizon Tofas Turk is expected to generate 17.21 times less return on investment than Escort Teknoloji. But when comparing it to its historical volatility, Tofas Turk Otomobil is 1.68 times less risky than Escort Teknoloji. It trades about 0.0 of its potential returns per unit of risk. Escort Teknoloji Yatirim is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,060 in Escort Teknoloji Yatirim on September 3, 2024 and sell it today you would earn a total of 270.00 from holding Escort Teknoloji Yatirim or generate 5.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Escort Teknoloji Yatirim
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Escort Teknoloji Yatirim |
Tofas Turk and Escort Teknoloji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Escort Teknoloji
The main advantage of trading using opposite Tofas Turk and Escort Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Escort Teknoloji 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 Escort Teknoloji will offset losses from the drop in Escort Teknoloji's long position.| Tofas Turk vs. Koc Holding AS | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Turkiye Sise ve | Tofas Turk vs. Turkcell Iletisim Hizmetleri |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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