Correlation Between Bosch Fren and Atlantis Yatirim

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

Diversification Opportunities for Bosch Fren and Atlantis Yatirim

-0.11

Correlation Coefficient

Bosch Fren  Atlantis Yatirim

Good diversification

The 3 months correlation between Bosch and Atlantis is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Bosch Fren Sistemleri and Atlantis Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis Yatirim Holding 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 Atlantis Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis Yatirim Holding has no effect on the direction of Bosch Fren i.e., Bosch Fren and Atlantis Yatirim go up and down completely randomly.

Pair Corralation between Bosch Fren and Atlantis Yatirim

Assuming the 90 days trading horizon Bosch Fren Sistemleri is expected to generate 0.54 times more return on investment than Atlantis Yatirim. However, Bosch Fren Sistemleri is 1.85 times less risky than Atlantis Yatirim. It trades about 0.04 of its potential returns per unit of risk. Atlantis Yatirim Holding is currently generating about -0.16 per unit of risk. If you would invest  71,000  in Bosch Fren Sistemleri on August 27, 2024 and sell it today you would earn a total of  3,250  from holding Bosch Fren Sistemleri or generate 4.58% return on investment over 90 days.

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

Bosch Fren Sistemleri  vs.  Atlantis Yatirim Holding

Bosch Fren Sistemleri

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bosch Fren Sistemleri are ranked lower than 3 (%) 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.

Atlantis Yatirim Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Atlantis Yatirim Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in December 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Bosch Fren and Atlantis Yatirim

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

The idea behind Bosch Fren Sistemleri and Atlantis Yatirim Holding 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.