Correlation Between Bosch Fren and Hektas Ticaret

Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Hektas Ticaret 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 Bosch Fren and Hektas Ticaret into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bosch Fren Sistemleri and Hektas Ticaret TAS, you can compare the effects of market volatilities on Bosch Fren and Hektas Ticaret 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 Bosch Fren with a short position of Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Hektas Ticaret.

Diversification Opportunities for Bosch Fren and Hektas Ticaret

-0.55

Correlation Coefficient

Bosch Fren  Hektas Ticaret

Excellent diversification

The 3 months correlation between Bosch and Hektas is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS and Bosch Fren 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 Bosch Fren Sistemleri are associated (or correlated) with Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Bosch Fren i.e., Bosch Fren and Hektas Ticaret go up and down completely randomly.

Pair Corralation between Bosch Fren and Hektas Ticaret

Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to generate 1.02 times more return on investment than Hektas Ticaret. However, Bosch Fren is 1.02 times more volatile than Hektas Ticaret TAS. It trades about 0.02 of its potential returns per unit of risk. Hektas Ticaret TAS is currently generating about 0.0 per unit of risk. If you would invest  69,300  in Bosch Fren Sistemleri on October 1, 2024 and sell it today you would earn a total of  1,400  from holding Bosch Fren Sistemleri or generate 2.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Bosch Fren Sistemleri  vs.  Hektas Ticaret TAS

Bosch Fren Sistemleri

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bosch Fren Sistemleri are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Bosch Fren is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Hektas Ticaret TAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hektas Ticaret TAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Hektas Ticaret is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Bosch Fren and Hektas Ticaret

The main advantage of trading using opposite Bosch Fren and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bosch Fren position performs unexpectedly, Hektas Ticaret 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 Hektas Ticaret will offset losses from the drop in Hektas Ticaret's long position.

The idea behind Bosch Fren Sistemleri and Hektas Ticaret TAS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.