Correlation Between Dogus Gayrimenkul and Alkim Alkali
Can any of the company-specific risk be diversified away by investing in both Dogus Gayrimenkul and Alkim Alkali 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 Dogus Gayrimenkul and Alkim Alkali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogus Gayrimenkul Yatirim and Alkim Alkali Kimya, you can compare the effects of market volatilities on Dogus Gayrimenkul and Alkim Alkali 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 Dogus Gayrimenkul with a short position of Alkim Alkali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Gayrimenkul and Alkim Alkali.
Diversification Opportunities for Dogus Gayrimenkul and Alkim Alkali
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Dogus and Alkim is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Gayrimenkul Yatirim and Alkim Alkali Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Alkali Kimya and Dogus Gayrimenkul 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 Dogus Gayrimenkul Yatirim are associated (or correlated) with Alkim Alkali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Alkali Kimya has no effect on the direction of Dogus Gayrimenkul i.e., Dogus Gayrimenkul and Alkim Alkali go up and down completely randomly.
Pair Corralation between Dogus Gayrimenkul and Alkim Alkali
Assuming the 90 days trading horizon Dogus Gayrimenkul Yatirim is expected to generate 1.51 times more return on investment than Alkim Alkali. However, Dogus Gayrimenkul is 1.51 times more volatile than Alkim Alkali Kimya. It trades about 0.05 of its potential returns per unit of risk. Alkim Alkali Kimya is currently generating about 0.03 per unit of risk. If you would invest 2,528 in Dogus Gayrimenkul Yatirim on September 2, 2024 and sell it today you would earn a total of 1,490 from holding Dogus Gayrimenkul Yatirim or generate 58.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dogus Gayrimenkul Yatirim vs. Alkim Alkali Kimya
Performance |
| Timeline |
| Dogus Gayrimenkul Yatirim |
| Alkim Alkali Kimya |
Dogus Gayrimenkul and Alkim Alkali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogus Gayrimenkul and Alkim Alkali
The main advantage of trading using opposite Dogus Gayrimenkul and Alkim Alkali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Gayrimenkul position performs unexpectedly, Alkim Alkali 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 Alkim Alkali will offset losses from the drop in Alkim Alkali's long position.| Dogus Gayrimenkul vs. Gentas Genel Metal | Dogus Gayrimenkul vs. MEGA METAL | Dogus Gayrimenkul vs. Koza Anadolu Metal | Dogus Gayrimenkul vs. Cuhadaroglu Metal Sanayi |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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