Correlation Between DO AG and Celebi Hava
Can any of the company-specific risk be diversified away by investing in both DO AG and Celebi Hava 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 DO AG and Celebi Hava into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DO AG and Celebi Hava Servisi, you can compare the effects of market volatilities on DO AG and Celebi Hava 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 DO AG with a short position of Celebi Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO AG and Celebi Hava.
Diversification Opportunities for DO AG and Celebi Hava
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between DOCO and Celebi is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding DO AG and Celebi Hava Servisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebi Hava Servisi and DO AG 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 DO AG are associated (or correlated) with Celebi Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebi Hava Servisi has no effect on the direction of DO AG i.e., DO AG and Celebi Hava go up and down completely randomly.
Pair Corralation between DO AG and Celebi Hava
Assuming the 90 days trading horizon DO AG is expected to generate 1.72 times more return on investment than Celebi Hava. However, DO AG is 1.72 times more volatile than Celebi Hava Servisi. It trades about 0.32 of its potential returns per unit of risk. Celebi Hava Servisi is currently generating about -0.05 per unit of risk. If you would invest 513,000 in DO AG on September 13, 2024 and sell it today you would earn a total of 118,500 from holding DO AG or generate 23.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO AG vs. Celebi Hava Servisi
Performance |
| Timeline |
| DO AG |
| Celebi Hava Servisi |
DO AG and Celebi Hava Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO AG and Celebi Hava
The main advantage of trading using opposite DO AG and Celebi Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO AG position performs unexpectedly, Celebi Hava 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 Celebi Hava will offset losses from the drop in Celebi Hava's long position.| DO AG vs. ICBC Turkey Bank | DO AG vs. Koza Anadolu Metal | DO AG vs. Politeknik Metal Sanayi | DO AG vs. MEGA METAL |
| Celebi Hava vs. TAV Havalimanlari Holding | Celebi Hava vs. Pegasus Hava Tasimaciligi | Celebi Hava vs. Tekfen Holding AS | Celebi Hava vs. Otokar Otomotiv ve |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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