Correlation Between Datagate Bilgisayar and Petrokent Turizm
Can any of the company-specific risk be diversified away by investing in both Datagate Bilgisayar and Petrokent Turizm 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 Datagate Bilgisayar and Petrokent Turizm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Datagate Bilgisayar Malzemeleri and Petrokent Turizm AS, you can compare the effects of market volatilities on Datagate Bilgisayar and Petrokent Turizm 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 Datagate Bilgisayar with a short position of Petrokent Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagate Bilgisayar and Petrokent Turizm.
Diversification Opportunities for Datagate Bilgisayar and Petrokent Turizm
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Datagate and Petrokent is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Datagate Bilgisayar Malzemeler and Petrokent Turizm AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrokent Turizm and Datagate Bilgisayar 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 Datagate Bilgisayar Malzemeleri are associated (or correlated) with Petrokent Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrokent Turizm has no effect on the direction of Datagate Bilgisayar i.e., Datagate Bilgisayar and Petrokent Turizm go up and down completely randomly.
Pair Corralation between Datagate Bilgisayar and Petrokent Turizm
Assuming the 90 days trading horizon Datagate Bilgisayar Malzemeleri is expected to generate 0.93 times more return on investment than Petrokent Turizm. However, Datagate Bilgisayar Malzemeleri is 1.07 times less risky than Petrokent Turizm. It trades about 0.07 of its potential returns per unit of risk. Petrokent Turizm AS is currently generating about 0.05 per unit of risk. If you would invest 1,751 in Datagate Bilgisayar Malzemeleri on October 9, 2024 and sell it today you would earn a total of 2,733 from holding Datagate Bilgisayar Malzemeleri or generate 156.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Datagate Bilgisayar Malzemeler vs. Petrokent Turizm AS
Performance |
| Timeline |
| Datagate Bilgisayar |
| Petrokent Turizm |
Datagate Bilgisayar and Petrokent Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Datagate Bilgisayar and Petrokent Turizm
The main advantage of trading using opposite Datagate Bilgisayar and Petrokent Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datagate Bilgisayar position performs unexpectedly, Petrokent Turizm 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 Petrokent Turizm will offset losses from the drop in Petrokent Turizm's long position.| Datagate Bilgisayar vs. Koza Anadolu Metal | Datagate Bilgisayar vs. Cuhadaroglu Metal Sanayi | Datagate Bilgisayar vs. MEGA METAL | Datagate Bilgisayar vs. Politeknik Metal Sanayi |
| Petrokent Turizm vs. Eminis Ambalaj Sanayi | Petrokent Turizm vs. Ekiz Kimya Sanayi | Petrokent Turizm vs. Brisa Bridgestone Sabanci | Petrokent Turizm vs. IZDEMIR Enerji Elektrik |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |