Correlation Between Dagi Giyim and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both Dagi Giyim 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 Dagi Giyim and Eminis Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dagi Giyim Sanayi and Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Dagi Giyim 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 Dagi Giyim with a short position of Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dagi Giyim and Eminis Ambalaj.
Diversification Opportunities for Dagi Giyim and Eminis Ambalaj
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dagi and Eminis is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Dagi Giyim 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 Dagi Giyim 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 Dagi Giyim 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 Dagi Giyim i.e., Dagi Giyim and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between Dagi Giyim and Eminis Ambalaj
Assuming the 90 days trading horizon Dagi Giyim Sanayi is expected to generate 0.83 times more return on investment than Eminis Ambalaj. However, Dagi Giyim Sanayi is 1.2 times less risky than Eminis Ambalaj. It trades about 0.28 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about 0.14 per unit of risk. If you would invest 1,448 in Dagi Giyim Sanayi on October 11, 2024 and sell it today you would earn a total of 355.00 from holding Dagi Giyim Sanayi or generate 24.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dagi Giyim Sanayi vs. Eminis Ambalaj Sanayi
Performance |
| Timeline |
| Dagi Giyim Sanayi |
| Eminis Ambalaj Sanayi |
Dagi Giyim and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dagi Giyim and Eminis Ambalaj
The main advantage of trading using opposite Dagi Giyim and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dagi Giyim 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.| Dagi Giyim vs. Eminis Ambalaj Sanayi | Dagi Giyim vs. Ekiz Kimya Sanayi | Dagi Giyim vs. Brisa Bridgestone Sabanci | Dagi Giyim vs. IZDEMIR Enerji Elektrik |
| Eminis Ambalaj vs. Galatasaray Sportif Sinai | Eminis Ambalaj vs. Akbank TAS | Eminis Ambalaj vs. KOC METALURJI | Eminis Ambalaj vs. Koza Anadolu Metal |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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