Correlation Between Tofas Turk and Birlik Mensucat
Can any of the company-specific risk be diversified away by investing in both Tofas Turk and Birlik Mensucat 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 Birlik Mensucat 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 Birlik Mensucat Ticaret, you can compare the effects of market volatilities on Tofas Turk and Birlik Mensucat 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 Birlik Mensucat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tofas Turk and Birlik Mensucat.
Diversification Opportunities for Tofas Turk and Birlik Mensucat
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tofas and Birlik is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Tofas Turk Otomobil and Birlik Mensucat Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Birlik Mensucat 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 Birlik Mensucat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Birlik Mensucat Ticaret has no effect on the direction of Tofas Turk i.e., Tofas Turk and Birlik Mensucat go up and down completely randomly.
Pair Corralation between Tofas Turk and Birlik Mensucat
Assuming the 90 days trading horizon Tofas Turk Otomobil is expected to under-perform the Birlik Mensucat. But the stock apears to be less risky and, when comparing its historical volatility, Tofas Turk Otomobil is 2.09 times less risky than Birlik Mensucat. The stock trades about -0.09 of its potential returns per unit of risk. The Birlik Mensucat Ticaret is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 568.00 in Birlik Mensucat Ticaret on September 23, 2024 and sell it today you would lose (46.00) from holding Birlik Mensucat Ticaret or give up 8.1% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Tofas Turk Otomobil vs. Birlik Mensucat Ticaret
Performance |
Timeline |
Tofas Turk Otomobil |
Birlik Mensucat Ticaret |
Tofas Turk and Birlik Mensucat Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tofas Turk and Birlik Mensucat
The main advantage of trading using opposite Tofas Turk and Birlik Mensucat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tofas Turk position performs unexpectedly, Birlik Mensucat 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 Birlik Mensucat will offset losses from the drop in Birlik Mensucat's long position.Tofas Turk vs. Ford Otomotiv Sanayi | Tofas Turk vs. Hektas Ticaret TAS | Tofas Turk vs. Eregli Demir ve | Tofas Turk vs. Aksa Akrilik Kimya |
Birlik Mensucat vs. Ford Otomotiv Sanayi | Birlik Mensucat vs. Tofas Turk Otomobil | Birlik Mensucat vs. Hektas Ticaret TAS | Birlik Mensucat vs. Eregli Demir ve |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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