Correlation Between Dogus Otomotiv and Hektas Ticaret
Can any of the company-specific risk be diversified away by investing in both Dogus Otomotiv and Hektas Ticaret 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 Hektas Ticaret 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 Hektas Ticaret TAS, you can compare the effects of market volatilities on Dogus Otomotiv and Hektas Ticaret 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 Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Otomotiv and Hektas Ticaret.
Diversification Opportunities for Dogus Otomotiv and Hektas Ticaret
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dogus and Hektas is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Otomotiv Servis and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS 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 Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Dogus Otomotiv i.e., Dogus Otomotiv and Hektas Ticaret go up and down completely randomly.
Pair Corralation between Dogus Otomotiv and Hektas Ticaret
Assuming the 90 days trading horizon Dogus Otomotiv Servis is expected to under-perform the Hektas Ticaret. But the stock apears to be less risky and, when comparing its historical volatility, Dogus Otomotiv Servis is 1.04 times less risky than Hektas Ticaret. The stock trades about -0.09 of its potential returns per unit of risk. The Hektas Ticaret TAS is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 412.00 in Hektas Ticaret TAS on September 29, 2024 and sell it today you would lose (10.00) from holding Hektas Ticaret TAS or give up 2.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dogus Otomotiv Servis vs. Hektas Ticaret TAS
Performance |
| Timeline |
| Dogus Otomotiv Servis |
| Hektas Ticaret TAS |
Dogus Otomotiv and Hektas Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogus Otomotiv and Hektas Ticaret
The main advantage of trading using opposite Dogus Otomotiv and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Otomotiv position performs unexpectedly, Hektas Ticaret 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 Hektas Ticaret will offset losses from the drop in Hektas Ticaret's long position.The idea behind Dogus Otomotiv Servis and Hektas Ticaret TAS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Hektas Ticaret vs. Ege Endustri ve | Hektas Ticaret vs. Bosch Fren Sistemleri | Hektas Ticaret vs. Dogus Otomotiv Servis | Hektas Ticaret vs. Nuh Cimento Sanayi |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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