Correlation Between Tofas Turk and Sok Marketler
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Sok Marketler 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 Sok Marketler 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 Sok Marketler Ticaret, you can compare the effects of market volatilities on Tofas Turk and Sok Marketler 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 Sok Marketler. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Sok Marketler.
Diversification Opportunities for Tofas Turk and Sok Marketler
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tofas and Sok is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Sok Marketler Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sok Marketler Ticaret 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 Sok Marketler. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sok Marketler Ticaret has no effect on the direction of Tofas Turk i.e., Tofas Turk and Sok Marketler go up and down completely randomly.
Pair Corralation between Tofas Turk and Sok Marketler
Assuming the 90 days trading horizon Tofas Turk Otomobil is expected to generate 1.02 times more return on investment than Sok Marketler. However, Tofas Turk is 1.02 times more volatile than Sok Marketler Ticaret. It trades about -0.12 of its potential returns per unit of risk. Sok Marketler Ticaret is currently generating about -0.16 per unit of risk. If you would invest 24,370 in Tofas Turk Otomobil on September 2, 2024 and sell it today you would lose (4,570) from holding Tofas Turk Otomobil or give up 18.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tofas Turk Otomobil vs. Sok Marketler Ticaret
Performance |
| Timeline |
| Tofas Turk Otomobil |
| Sok Marketler Ticaret |
Tofas Turk and Sok Marketler Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tofas Turk and Sok Marketler
The main advantage of trading using opposite Tofas Turk and Sok Marketler positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Sok Marketler 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 Sok Marketler will offset losses from the drop in Sok Marketler'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 |
| Sok Marketler vs. BIM Birlesik Magazalar | Sok Marketler vs. Migros Ticaret AS | Sok Marketler vs. Turk Telekomunikasyon AS | Sok Marketler vs. Tofas Turk Otomobil |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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