Correlation Between EIS Eczacibasi and Alkim Alkali
Can any of the company-specific risk be diversified away by investing in both EIS Eczacibasi 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 EIS Eczacibasi and Alkim Alkali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EIS Eczacibasi Ilac and Alkim Alkali Kimya, you can compare the effects of market volatilities on EIS Eczacibasi 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 EIS Eczacibasi with a short position of Alkim Alkali. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIS Eczacibasi and Alkim Alkali.
Diversification Opportunities for EIS Eczacibasi and Alkim Alkali
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EIS and Alkim is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding EIS Eczacibasi Ilac 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 EIS Eczacibasi 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 EIS Eczacibasi Ilac 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 EIS Eczacibasi i.e., EIS Eczacibasi and Alkim Alkali go up and down completely randomly.
Pair Corralation between EIS Eczacibasi and Alkim Alkali
Assuming the 90 days trading horizon EIS Eczacibasi Ilac is expected to generate 1.08 times more return on investment than Alkim Alkali. However, EIS Eczacibasi is 1.08 times more volatile than Alkim Alkali Kimya. It trades about 0.0 of its potential returns per unit of risk. Alkim Alkali Kimya is currently generating about -0.01 per unit of risk. If you would invest 4,888 in EIS Eczacibasi Ilac on November 3, 2024 and sell it today you would lose (408.00) from holding EIS Eczacibasi Ilac or give up 8.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
EIS Eczacibasi Ilac vs. Alkim Alkali Kimya
Performance |
| Timeline |
| EIS Eczacibasi Ilac |
| Alkim Alkali Kimya |
EIS Eczacibasi and Alkim Alkali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EIS Eczacibasi and Alkim Alkali
The main advantage of trading using opposite EIS Eczacibasi and Alkim Alkali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIS Eczacibasi 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.| EIS Eczacibasi vs. Petkim Petrokimya Holding | EIS Eczacibasi vs. Tekfen Holding AS | EIS Eczacibasi vs. Alarko Holding AS | EIS Eczacibasi vs. Tofas Turk Otomobil |
| Alkim Alkali vs. Aksa Akrilik Kimya | Alkim Alkali vs. Eregli Demir ve | Alkim Alkali vs. Tofas Turk Otomobil | Alkim Alkali vs. Hektas Ticaret TAS |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |