Correlation Between Ford and Matriks Bilgi

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

By analyzing existing cross correlation between Ford Motor and Matriks Bilgi Dagitim, you can compare the effects of market volatilities on Ford and Matriks Bilgi 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 Ford with a short position of Matriks Bilgi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ford and Matriks Bilgi.

Diversification Opportunities for Ford and Matriks Bilgi

-0.32

Correlation Coefficient

Ford  Matriks Bilgi

Very good diversification

The 3 months correlation between Ford and Matriks is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ford Motor and Matriks Bilgi Dagitim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matriks Bilgi Dagitim and Ford 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 Ford Motor are associated (or correlated) with Matriks Bilgi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matriks Bilgi Dagitim has no effect on the direction of Ford i.e., Ford and Matriks Bilgi go up and down completely randomly.

Pair Corralation between Ford and Matriks Bilgi

Taking into account the 90-day investment horizon Ford Motor is expected to under-perform the Matriks Bilgi. But the stock apears to be less risky and, when comparing its historical volatility, Ford Motor is 1.42 times less risky than Matriks Bilgi. The stock trades about -0.02 of its potential returns per unit of risk. The Matriks Bilgi Dagitim is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,757  in Matriks Bilgi Dagitim on September 30, 2024 and sell it today you would earn a total of  230.00  from holding Matriks Bilgi Dagitim or generate 13.09% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Ford Motor  vs.  Matriks Bilgi Dagitim

Ford Motor

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ford Motor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Ford is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Matriks Bilgi Dagitim

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Matriks Bilgi Dagitim are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Matriks Bilgi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ford and Matriks Bilgi

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

The idea behind Ford Motor and Matriks Bilgi Dagitim 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.