Correlation Between Cuhadaroglu Metal and Euro Menkul
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Euro Menkul 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 Euro Menkul 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 Euro Menkul Kiymet, you can compare the effects of market volatilities on Cuhadaroglu Metal and Euro Menkul 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 Euro Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Euro Menkul.
Diversification Opportunities for Cuhadaroglu Metal and Euro Menkul
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cuhadaroglu and Euro is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Euro Menkul Kiymet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Euro Menkul Kiymet 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 Euro Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Euro Menkul Kiymet has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Euro Menkul go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Euro Menkul
Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to generate 0.47 times more return on investment than Euro Menkul. However, Cuhadaroglu Metal Sanayi is 2.12 times less risky than Euro Menkul. It trades about -0.18 of its potential returns per unit of risk. Euro Menkul Kiymet is currently generating about -0.15 per unit of risk. If you would invest 2,680 in Cuhadaroglu Metal Sanayi on October 24, 2024 and sell it today you would lose (210.00) from holding Cuhadaroglu Metal Sanayi or give up 7.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Euro Menkul Kiymet
Performance |
| Timeline |
| Cuhadaroglu Metal Sanayi |
| Euro Menkul Kiymet |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Cuhadaroglu Metal and Euro Menkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuhadaroglu Metal and Euro Menkul
The main advantage of trading using opposite Cuhadaroglu Metal and Euro Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Euro Menkul 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 Menkul will offset losses from the drop in Euro Menkul's long position.| Cuhadaroglu Metal vs. Galatasaray Sportif Sinai | Cuhadaroglu Metal vs. Politeknik Metal Sanayi | Cuhadaroglu Metal vs. Turkiye Kalkinma Bankasi | Cuhadaroglu Metal vs. Akbank TAS |
| Euro Menkul vs. Gentas Genel Metal | Euro Menkul vs. CEO Event Medya | Euro Menkul vs. Turkiye Kalkinma Bankasi | Euro Menkul vs. E Data Teknoloji Pazarlama |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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