Correlation Between Tofas Turk and Kristal Kola
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Kristal Kola 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 Kristal Kola 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 Kristal Kola ve, you can compare the effects of market volatilities on Tofas Turk and Kristal Kola 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 Kristal Kola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Kristal Kola.
Diversification Opportunities for Tofas Turk and Kristal Kola
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Tofas and Kristal is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Kristal Kola ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kristal Kola ve 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 Kristal Kola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kristal Kola ve has no effect on the direction of Tofas Turk i.e., Tofas Turk and Kristal Kola go up and down completely randomly.
Pair Corralation between Tofas Turk and Kristal Kola
Assuming the 90 days trading horizon Tofas Turk Otomobil is expected to generate 1.18 times more return on investment than Kristal Kola. However, Tofas Turk is 1.18 times more volatile than Kristal Kola ve. It trades about 0.08 of its potential returns per unit of risk. Kristal Kola ve is currently generating about -0.12 per unit of risk. If you would invest 19,630 in Tofas Turk Otomobil on August 30, 2024 and sell it today you would earn a total of 660.00 from holding Tofas Turk Otomobil or generate 3.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Kristal Kola ve
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Kristal Kola ve |
Tofas Turk and Kristal Kola Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Kristal Kola
The main advantage of trading using opposite Tofas Turk and Kristal Kola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Kristal Kola 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 Kristal Kola will offset losses from the drop in Kristal Kola'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 |
| Kristal Kola vs. BIM Birlesik Magazalar | Kristal Kola vs. Turk Telekomunikasyon AS | Kristal Kola vs. Tofas Turk Otomobil | Kristal Kola vs. Turkcell Iletisim Hizmetleri |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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