Correlation Between Derimod Konfeksiyon and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Derimod Konfeksiyon and Ege Endustri 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 Derimod Konfeksiyon and Ege Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Derimod Konfeksiyon Ayakkabi and Ege Endustri ve, you can compare the effects of market volatilities on Derimod Konfeksiyon and Ege Endustri 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 Derimod Konfeksiyon with a short position of Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Derimod Konfeksiyon and Ege Endustri.
Diversification Opportunities for Derimod Konfeksiyon and Ege Endustri
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Derimod and Ege is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Derimod Konfeksiyon Ayakkabi and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve and Derimod Konfeksiyon 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 Derimod Konfeksiyon Ayakkabi are associated (or correlated) with Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Derimod Konfeksiyon i.e., Derimod Konfeksiyon and Ege Endustri go up and down completely randomly.
Pair Corralation between Derimod Konfeksiyon and Ege Endustri
Assuming the 90 days trading horizon Derimod Konfeksiyon Ayakkabi is expected to under-perform the Ege Endustri. But the stock apears to be less risky and, when comparing its historical volatility, Derimod Konfeksiyon Ayakkabi is 1.03 times less risky than Ege Endustri. The stock trades about -0.33 of its potential returns per unit of risk. The Ege Endustri ve is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 1,015,000 in Ege Endustri ve on November 4, 2024 and sell it today you would lose (68,000) from holding Ege Endustri ve or give up 6.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Derimod Konfeksiyon Ayakkabi vs. Ege Endustri ve
Performance |
| Timeline |
| Derimod Konfeksiyon |
| Ege Endustri ve |
Derimod Konfeksiyon and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Derimod Konfeksiyon and Ege Endustri
The main advantage of trading using opposite Derimod Konfeksiyon and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Derimod Konfeksiyon position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri's long position.| Derimod Konfeksiyon vs. Koc Holding AS | Derimod Konfeksiyon vs. Turkish Airlines | Derimod Konfeksiyon vs. Turkiye Garanti Bankasi | Derimod Konfeksiyon vs. Turkiye Petrol Rafinerileri |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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