Correlation Between Dogus Otomotiv and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both Dogus Otomotiv 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 Dogus Otomotiv and Eminis Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogus Otomotiv Servis and Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Dogus Otomotiv 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 Dogus Otomotiv with a short position of Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Otomotiv and Eminis Ambalaj.
Diversification Opportunities for Dogus Otomotiv and Eminis Ambalaj
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Dogus and Eminis is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Otomotiv Servis 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 Dogus Otomotiv 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 Otomotiv Servis 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 Dogus Otomotiv i.e., Dogus Otomotiv and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between Dogus Otomotiv and Eminis Ambalaj
Assuming the 90 days trading horizon Dogus Otomotiv Servis is expected to generate 0.44 times more return on investment than Eminis Ambalaj. However, Dogus Otomotiv Servis is 2.25 times less risky than Eminis Ambalaj. It trades about -0.04 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about -0.03 per unit of risk. If you would invest 19,370 in Dogus Otomotiv Servis on October 24, 2024 and sell it today you would lose (310.00) from holding Dogus Otomotiv Servis or give up 1.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Dogus Otomotiv Servis vs. Eminis Ambalaj Sanayi
Performance |
| Timeline |
| Dogus Otomotiv Servis |
| Eminis Ambalaj Sanayi |
Dogus Otomotiv and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogus Otomotiv and Eminis Ambalaj
The main advantage of trading using opposite Dogus Otomotiv and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Otomotiv 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.| Dogus Otomotiv vs. Ford Otomotiv Sanayi | Dogus Otomotiv vs. Tofas Turk Otomobil | Dogus Otomotiv vs. Turk Traktor ve | Dogus Otomotiv vs. Eregli Demir ve |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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