Correlation Between Aselsan Elektronik and Euro Kapital
Can any of the company-specific risk be diversified away by investing in both Aselsan Elektronik and Euro Kapital 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 Euro Kapital 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 Euro Kapital Yatirim, you can compare the effects of market volatilities on Aselsan Elektronik and Euro Kapital 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 Euro Kapital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and Euro Kapital.
Diversification Opportunities for Aselsan Elektronik and Euro Kapital
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Aselsan and Euro is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi and Euro Kapital Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Kapital Yatirim 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 Euro Kapital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Kapital Yatirim has no effect on the direction of Aselsan Elektronik i.e., Aselsan Elektronik and Euro Kapital go up and down completely randomly.
Pair Corralation between Aselsan Elektronik and Euro Kapital
Assuming the 90 days trading horizon Aselsan Elektronik is expected to generate 1.22 times less return on investment than Euro Kapital. But when comparing it to its historical volatility, Aselsan Elektronik Sanayi is 2.15 times less risky than Euro Kapital. It trades about 0.11 of its potential returns per unit of risk. Euro Kapital Yatirim is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 595.00 in Euro Kapital Yatirim on September 2, 2024 and sell it today you would earn a total of 640.00 from holding Euro Kapital Yatirim or generate 107.56% 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. Euro Kapital Yatirim
Performance |
| Timeline |
| Aselsan Elektronik Sanayi |
| Euro Kapital Yatirim |
Aselsan Elektronik and Euro Kapital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aselsan Elektronik and Euro Kapital
The main advantage of trading using opposite Aselsan Elektronik and Euro Kapital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aselsan Elektronik position performs unexpectedly, Euro Kapital 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 Euro Kapital will offset losses from the drop in Euro Kapital'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 |
| Euro Kapital vs. Gentas Genel Metal | Euro Kapital vs. Koza Anadolu Metal | Euro Kapital vs. Creditwest Faktoring AS | Euro Kapital 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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