Correlation Between Deva Holding and DO AG
Can any of the company-specific risk be diversified away by investing in both Deva Holding and DO AG 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 Deva Holding and DO AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deva Holding AS and DO AG, you can compare the effects of market volatilities on Deva Holding and DO AG 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 Deva Holding with a short position of DO AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deva Holding and DO AG.
Diversification Opportunities for Deva Holding and DO AG
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Deva and DOCO is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Deva Holding AS and DO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO AG and Deva Holding 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 Deva Holding AS are associated (or correlated) with DO AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO AG has no effect on the direction of Deva Holding i.e., Deva Holding and DO AG go up and down completely randomly.
Pair Corralation between Deva Holding and DO AG
Assuming the 90 days trading horizon Deva Holding AS is expected to under-perform the DO AG. In addition to that, Deva Holding is 1.04 times more volatile than DO AG. It trades about -0.11 of its total potential returns per unit of risk. DO AG is currently generating about 0.06 per unit of volatility. If you would invest 522,000 in DO AG on September 2, 2024 and sell it today you would earn a total of 69,500 from holding DO AG or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deva Holding AS vs. DO AG
Performance |
| Timeline |
| Deva Holding AS |
| DO AG |
Deva Holding and DO AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deva Holding and DO AG
The main advantage of trading using opposite Deva Holding and DO AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deva Holding position performs unexpectedly, DO AG 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 DO AG will offset losses from the drop in DO AG's long position.| Deva Holding vs. Turkiye Is Bankasi | Deva Holding vs. Ege Endustri ve | Deva Holding vs. Turkiye Petrol Rafinerileri | Deva Holding vs. Ford Otomotiv Sanayi |
| DO AG vs. Turkiye Kalkinma Bankasi | DO AG vs. Datagate Bilgisayar Malzemeleri | DO AG vs. Koza Anadolu Metal | DO AG vs. Gentas Genel 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 Stocks Directory module to find actively traded stocks across global markets.
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