Correlation Between Cuhadaroglu Metal and Ihlas Gazetecilik
Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Ihlas Gazetecilik 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 Ihlas Gazetecilik 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 Ihlas Gazetecilik AS, you can compare the effects of market volatilities on Cuhadaroglu Metal and Ihlas Gazetecilik 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 Ihlas Gazetecilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Ihlas Gazetecilik.
Diversification Opportunities for Cuhadaroglu Metal and Ihlas Gazetecilik
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cuhadaroglu and Ihlas is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Ihlas Gazetecilik AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Gazetecilik 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 Ihlas Gazetecilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Gazetecilik has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Ihlas Gazetecilik go up and down completely randomly.
Pair Corralation between Cuhadaroglu Metal and Ihlas Gazetecilik
Assuming the 90 days trading horizon Cuhadaroglu Metal is expected to generate 5.85 times less return on investment than Ihlas Gazetecilik. But when comparing it to its historical volatility, Cuhadaroglu Metal Sanayi is 3.55 times less risky than Ihlas Gazetecilik. It trades about 0.23 of its potential returns per unit of risk. Ihlas Gazetecilik AS is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 113.00 in Ihlas Gazetecilik AS on September 4, 2024 and sell it today you would earn a total of 70.00 from holding Ihlas Gazetecilik AS or generate 61.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cuhadaroglu Metal Sanayi vs. Ihlas Gazetecilik AS
Performance |
| Timeline |
| Cuhadaroglu Metal Sanayi |
| Ihlas Gazetecilik |
Cuhadaroglu Metal and Ihlas Gazetecilik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuhadaroglu Metal and Ihlas Gazetecilik
The main advantage of trading using opposite Cuhadaroglu Metal and Ihlas Gazetecilik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuhadaroglu Metal position performs unexpectedly, Ihlas Gazetecilik 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 Ihlas Gazetecilik will offset losses from the drop in Ihlas Gazetecilik's long position.| Cuhadaroglu Metal vs. Turkiye Petrol Rafinerileri | Cuhadaroglu Metal vs. Arcelik AS | Cuhadaroglu Metal vs. Turkiye Garanti Bankasi | Cuhadaroglu Metal vs. Akbank TAS |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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