Correlation Between Cemtas Celik and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Cemtas Celik and Dow Jones 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 Cemtas Celik and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemtas Celik Makina and Dow Jones Industrial, you can compare the effects of market volatilities on Cemtas Celik and Dow Jones 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 Cemtas Celik with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtas Celik and Dow Jones.
Diversification Opportunities for Cemtas Celik and Dow Jones
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cemtas and Dow is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Cemtas Celik 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 Cemtas Celik Makina are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Cemtas Celik i.e., Cemtas Celik and Dow Jones go up and down completely randomly.
Pair Corralation between Cemtas Celik and Dow Jones
Assuming the 90 days trading horizon Cemtas Celik Makina is expected to generate 24.23 times more return on investment than Dow Jones. However, Cemtas Celik is 24.23 times more volatile than Dow Jones Industrial. It trades about 0.03 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 1,231 in Cemtas Celik Makina on September 3, 2024 and sell it today you would lose (346.00) from holding Cemtas Celik Makina or give up 28.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Cemtas Celik Makina vs. Dow Jones Industrial
Performance |
| Timeline |
Cemtas Celik and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Cemtas Celik Makina
Pair trading matchups for Cemtas Celik
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Cemtas Celik and Dow Jones
The main advantage of trading using opposite Cemtas Celik and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtas Celik position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Cemtas Celik vs. Qnb Finansbank AS | Cemtas Celik vs. Turkiye Kalkinma Bankasi | Cemtas Celik vs. Kocaer Celik Sanayi | Cemtas Celik vs. Cimentas Izmir Cimento |
| Dow Jones vs. Eastern Co | Dow Jones vs. Uber Technologies | Dow Jones vs. AKITA Drilling | Dow Jones vs. Chemours Co |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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