Correlation Between Aselsan Elektronik and Ege Gubre
Can any of the company-specific risk be diversified away by investing in both Aselsan Elektronik and Ege Gubre 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 Aselsan Elektronik and Ege Gubre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aselsan Elektronik Sanayi and Ege Gubre Sanayi, you can compare the effects of market volatilities on Aselsan Elektronik and Ege Gubre 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 Aselsan Elektronik with a short position of Ege Gubre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and Ege Gubre.
Diversification Opportunities for Aselsan Elektronik and Ege Gubre
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aselsan and Ege is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi and Ege Gubre Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Gubre Sanayi and Aselsan Elektronik 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 Aselsan Elektronik Sanayi are associated (or correlated) with Ege Gubre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Gubre Sanayi has no effect on the direction of Aselsan Elektronik i.e., Aselsan Elektronik and Ege Gubre go up and down completely randomly.
Pair Corralation between Aselsan Elektronik and Ege Gubre
Assuming the 90 days trading horizon Aselsan Elektronik is expected to generate 1.02 times less return on investment than Ege Gubre. But when comparing it to its historical volatility, Aselsan Elektronik Sanayi is 1.49 times less risky than Ege Gubre. It trades about 0.06 of its potential returns per unit of risk. Ege Gubre Sanayi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,552 in Ege Gubre Sanayi on August 30, 2024 and sell it today you would earn a total of 2,243 from holding Ege Gubre Sanayi or generate 63.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aselsan Elektronik Sanayi vs. Ege Gubre Sanayi
Performance |
| Timeline |
| Aselsan Elektronik Sanayi |
| Ege Gubre Sanayi |
Aselsan Elektronik and Ege Gubre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aselsan Elektronik and Ege Gubre
The main advantage of trading using opposite Aselsan Elektronik and Ege Gubre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aselsan Elektronik position performs unexpectedly, Ege Gubre 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 Gubre will offset losses from the drop in Ege Gubre's long position.| Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Petkim Petrokimya Holding | Aselsan Elektronik vs. Eregli Demir ve |
| Ege Gubre vs. Cuhadaroglu Metal Sanayi | Ege Gubre vs. Politeknik Metal Sanayi | Ege Gubre vs. ICBC Turkey Bank | Ege Gubre vs. Koza Anadolu Metal |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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