Correlation Between CEO Event and Kent Gida
Can any of the company-specific risk be diversified away by investing in both CEO Event and Kent Gida 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 CEO Event and Kent Gida into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CEO Event Medya and Kent Gida Maddeleri, you can compare the effects of market volatilities on CEO Event and Kent Gida 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 CEO Event with a short position of Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of CEO Event and Kent Gida.
Diversification Opportunities for CEO Event and Kent Gida
Very good diversification
The 3 months correlation between CEO and Kent is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding CEO Event Medya and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri and CEO Event 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 CEO Event Medya are associated (or correlated) with Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of CEO Event i.e., CEO Event and Kent Gida go up and down completely randomly.
Pair Corralation between CEO Event and Kent Gida
Assuming the 90 days trading horizon CEO Event is expected to generate 2.9 times less return on investment than Kent Gida. But when comparing it to its historical volatility, CEO Event Medya is 1.13 times less risky than Kent Gida. It trades about 0.03 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 19,900 in Kent Gida Maddeleri on August 31, 2024 and sell it today you would earn a total of 61,750 from holding Kent Gida Maddeleri or generate 310.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CEO Event Medya vs. Kent Gida Maddeleri
Performance |
| Timeline |
| CEO Event Medya |
| Kent Gida Maddeleri |
CEO Event and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CEO Event and Kent Gida
The main advantage of trading using opposite CEO Event and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CEO Event position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida's long position.| CEO Event vs. Brisa Bridgestone Sabanci | CEO Event vs. Dogus Gayrimenkul Yatirim | CEO Event vs. IZDEMIR Enerji Elektrik | CEO Event vs. Logo Yazilim Sanayi |
| Kent Gida vs. Eregli Demir ve | Kent Gida vs. Turkiye Petrol Rafinerileri | Kent Gida vs. Turkiye Sise ve | Kent Gida vs. Ford Otomotiv 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 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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