Correlation Between Cuhadaroglu Metal and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Eminis Ambalaj 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 Cuhadaroglu Metal and Eminis Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Cuhadaroglu Metal and Eminis Ambalaj 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 Cuhadaroglu Metal with a short position of Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Eminis Ambalaj.
Diversification Opportunities for Cuhadaroglu Metal and Eminis Ambalaj
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Cuhadaroglu and Eminis is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj Sanayi and Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi are associated (or correlated) with Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Eminis Ambalaj
Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to under-perform the Eminis Ambalaj. But the stock apears to be less risky and, when comparing its historical volatility, Cuhadaroglu Metal Sanayi is 1.7 times less risky than Eminis Ambalaj. The stock trades about -0.18 of its potential returns per unit of risk. The Eminis Ambalaj Sanayi is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 25,575 in Eminis Ambalaj Sanayi on November 28, 2024 and sell it today you would earn a total of 6,425 from holding Eminis Ambalaj Sanayi or generate 25.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Eminis Ambalaj Sanayi
Performance |
| Timeline |
| Cuhadaroglu Metal Sanayi |
| Eminis Ambalaj Sanayi |
Cuhadaroglu Metal and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuhadaroglu Metal and Eminis Ambalaj
The main advantage of trading using opposite Cuhadaroglu Metal and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Eminis Ambalaj 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 Eminis Ambalaj will offset losses from the drop in Eminis Ambalaj's long position.| Cuhadaroglu Metal vs. MEGA METAL | Cuhadaroglu Metal vs. Bms Birlesik Metal | Cuhadaroglu Metal vs. Qnb Finansbank AS | Cuhadaroglu Metal vs. Sodas Sodyum Sanayi |
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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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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