Correlation Between Alkim Alkali and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Alkim Alkali and Ege Endustri 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 Alkim Alkali and Ege Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkim Alkali Kimya and Ege Endustri ve, you can compare the effects of market volatilities on Alkim Alkali and Ege Endustri 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 Alkim Alkali with a short position of Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Alkali and Ege Endustri.
Diversification Opportunities for Alkim Alkali and Ege Endustri
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alkim and Ege is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Alkali Kimya and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve and Alkim Alkali 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 Alkim Alkali Kimya are associated (or correlated) with Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Alkim Alkali i.e., Alkim Alkali and Ege Endustri go up and down completely randomly.
Pair Corralation between Alkim Alkali and Ege Endustri
Assuming the 90 days trading horizon Alkim Alkali Kimya is expected to generate 0.79 times more return on investment than Ege Endustri. However, Alkim Alkali Kimya is 1.27 times less risky than Ege Endustri. It trades about 0.02 of its potential returns per unit of risk. Ege Endustri ve is currently generating about -0.03 per unit of risk. If you would invest 3,320 in Alkim Alkali Kimya on August 29, 2024 and sell it today you would earn a total of 16.00 from holding Alkim Alkali Kimya or generate 0.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkim Alkali Kimya vs. Ege Endustri ve
Performance |
| Timeline |
| Alkim Alkali Kimya |
| Ege Endustri ve |
Alkim Alkali and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkim Alkali and Ege Endustri
The main advantage of trading using opposite Alkim Alkali and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Alkali position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri's long position.| Alkim Alkali vs. Aksa Akrilik Kimya | Alkim Alkali vs. Eregli Demir ve | Alkim Alkali vs. Tofas Turk Otomobil | Alkim Alkali vs. Hektas Ticaret TAS |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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