Correlation Between Dogus Otomotiv and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Dogus Otomotiv and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Dogus Otomotiv and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Otomotiv and SASA Polyester.
Diversification Opportunities for Dogus Otomotiv and SASA Polyester
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Dogus and SASA is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Otomotiv Servis and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Dogus Otomotiv i.e., Dogus Otomotiv and SASA Polyester go up and down completely randomly.
Pair Corralation between Dogus Otomotiv and SASA Polyester
Assuming the 90 days trading horizon Dogus Otomotiv Servis is expected to under-perform the SASA Polyester. But the stock apears to be less risky and, when comparing its historical volatility, Dogus Otomotiv Servis is 1.03 times less risky than SASA Polyester. The stock trades about -0.11 of its potential returns per unit of risk. The SASA Polyester Sanayi is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 431.00 in SASA Polyester Sanayi on September 28, 2024 and sell it today you would lose (14.00) from holding SASA Polyester Sanayi or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Dogus Otomotiv Servis vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Dogus Otomotiv Servis |
| SASA Polyester Sanayi |
Dogus Otomotiv and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dogus Otomotiv and SASA Polyester
The main advantage of trading using opposite Dogus Otomotiv and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Otomotiv position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester's long position.The idea behind Dogus Otomotiv Servis and SASA Polyester Sanayi 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.| SASA Polyester vs. Ege Endustri ve | SASA Polyester vs. Bosch Fren Sistemleri | SASA Polyester vs. Dogus Otomotiv Servis | SASA Polyester 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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