Correlation Between Bosch Fren and Aksu Enerji

Can any of the company-specific risk be diversified away by investing in both Bosch Fren and Aksu Enerji 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 Aksu Enerji 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 Aksu Enerji ve, you can compare the effects of market volatilities on Bosch Fren and Aksu Enerji 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 Aksu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bosch Fren and Aksu Enerji.

Diversification Opportunities for Bosch Fren and Aksu Enerji

0.28

Correlation Coefficient

Bosch Fren  Aksu Enerji

Modest diversification

The 3 months correlation between Bosch and Aksu is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Aksu Enerji ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aksu Enerji ve 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 Aksu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aksu Enerji ve has no effect on the direction of Bosch Fren i.e., Bosch Fren and Aksu Enerji go up and down completely randomly.

Pair Corralation between Bosch Fren and Aksu Enerji

Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to generate 1.06 times more return on investment than Aksu Enerji. However, Bosch Fren is 1.06 times more volatile than Aksu Enerji ve. It trades about 0.06 of its potential returns per unit of risk. Aksu Enerji ve is currently generating about 0.01 per unit of risk. If you would invest  68,900  in Bosch Fren Sistemleri on August 24, 2024 and sell it today you would earn a total of  5,650  from holding Bosch Fren Sistemleri or generate 8.2% return on investment over 90 days.

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

Bosch Fren Sistemleri  vs.  Aksu Enerji ve

Bosch Fren Sistemleri

Risk-Adjusted Performance

4 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bosch Fren Sistemleri are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Bosch Fren may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Aksu Enerji ve

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bosch Fren and Aksu Enerji

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

The idea behind Bosch Fren Sistemleri and Aksu Enerji ve 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.