Correlation Between Cimsa Cimento and Trend Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Cimsa Cimento and Trend Gayrimenkul 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 Cimsa Cimento and Trend Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimsa Cimento Sanayi and Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on Cimsa Cimento and Trend Gayrimenkul 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 Cimsa Cimento with a short position of Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimsa Cimento and Trend Gayrimenkul.
Diversification Opportunities for Cimsa Cimento and Trend Gayrimenkul
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cimsa and Trend is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Cimsa Cimento Sanayi and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim and Cimsa Cimento 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 Cimsa Cimento Sanayi are associated (or correlated) with Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of Cimsa Cimento i.e., Cimsa Cimento and Trend Gayrimenkul go up and down completely randomly.
Pair Corralation between Cimsa Cimento and Trend Gayrimenkul
Assuming the 90 days trading horizon Cimsa Cimento Sanayi is expected to generate 3.99 times more return on investment than Trend Gayrimenkul. However, Cimsa Cimento is 3.99 times more volatile than Trend Gayrimenkul Yatirim. It trades about 0.05 of its potential returns per unit of risk. Trend Gayrimenkul Yatirim is currently generating about 0.05 per unit of risk. If you would invest 1,238 in Cimsa Cimento Sanayi on September 3, 2024 and sell it today you would earn a total of 2,812 from holding Cimsa Cimento Sanayi or generate 227.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimsa Cimento Sanayi vs. Trend Gayrimenkul Yatirim
Performance |
| Timeline |
| Cimsa Cimento Sanayi |
| Trend Gayrimenkul Yatirim |
Cimsa Cimento and Trend Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimsa Cimento and Trend Gayrimenkul
The main advantage of trading using opposite Cimsa Cimento and Trend Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimsa Cimento position performs unexpectedly, Trend Gayrimenkul 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 Trend Gayrimenkul will offset losses from the drop in Trend Gayrimenkul's long position.| Cimsa Cimento vs. Aksa Akrilik Kimya | Cimsa Cimento vs. Tofas Turk Otomobil | Cimsa Cimento vs. Turk Traktor ve | Cimsa Cimento vs. Kordsa Global Endustriyel |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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