Correlation Between Afyon Cimento and Trend Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Afyon Cimento and Trend Gayrimenkul 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 Afyon Cimento and Trend Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afyon Cimento Sanayi and Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on Afyon Cimento and Trend Gayrimenkul 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 Afyon Cimento with a short position of Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afyon Cimento and Trend Gayrimenkul.
Diversification Opportunities for Afyon Cimento and Trend Gayrimenkul
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Afyon and Trend is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Afyon Cimento Sanayi and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim and Afyon Cimento 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 Afyon Cimento Sanayi are associated (or correlated) with Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of Afyon Cimento i.e., Afyon Cimento and Trend Gayrimenkul go up and down completely randomly.
Pair Corralation between Afyon Cimento and Trend Gayrimenkul
Assuming the 90 days trading horizon Afyon Cimento is expected to generate 1.83 times less return on investment than Trend Gayrimenkul. But when comparing it to its historical volatility, Afyon Cimento Sanayi is 1.94 times less risky than Trend Gayrimenkul. It trades about 0.05 of its potential returns per unit of risk. Trend Gayrimenkul Yatirim is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 597.00 in Trend Gayrimenkul Yatirim on September 3, 2024 and sell it today you would earn a total of 548.00 from holding Trend Gayrimenkul Yatirim or generate 91.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Afyon Cimento Sanayi vs. Trend Gayrimenkul Yatirim
Performance |
| Timeline |
| Afyon Cimento Sanayi |
| Trend Gayrimenkul Yatirim |
Afyon Cimento and Trend Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afyon Cimento and Trend Gayrimenkul
The main advantage of trading using opposite Afyon Cimento and Trend Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afyon Cimento position performs unexpectedly, Trend Gayrimenkul 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 Trend Gayrimenkul will offset losses from the drop in Trend Gayrimenkul's long position.| Afyon Cimento vs. Qnb Finansbank AS | Afyon Cimento vs. Turkiye Kalkinma Bankasi | Afyon Cimento vs. Kocaer Celik Sanayi | Afyon Cimento vs. Cimentas Izmir Cimento |
| Trend Gayrimenkul vs. Koza Anadolu Metal | Trend Gayrimenkul vs. Creditwest Faktoring AS | Trend Gayrimenkul vs. Qnb Finansbank AS | Trend Gayrimenkul vs. Cuhadaroglu Metal Sanayi |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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