Correlation Between Eczacibasi Yatirim and Turkiye Kalkinma
Can any of the company-specific risk be diversified away by investing in both Eczacibasi Yatirim and Turkiye Kalkinma 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 Eczacibasi Yatirim and Turkiye Kalkinma into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eczacibasi Yatirim Holding and Turkiye Kalkinma Bankasi, you can compare the effects of market volatilities on Eczacibasi Yatirim and Turkiye Kalkinma 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 Eczacibasi Yatirim with a short position of Turkiye Kalkinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eczacibasi Yatirim and Turkiye Kalkinma.
Diversification Opportunities for Eczacibasi Yatirim and Turkiye Kalkinma
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eczacibasi and Turkiye is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Eczacibasi Yatirim Holding and Turkiye Kalkinma Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Kalkinma Bankasi and Eczacibasi Yatirim 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 Eczacibasi Yatirim Holding are associated (or correlated) with Turkiye Kalkinma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Kalkinma Bankasi has no effect on the direction of Eczacibasi Yatirim i.e., Eczacibasi Yatirim and Turkiye Kalkinma go up and down completely randomly.
Pair Corralation between Eczacibasi Yatirim and Turkiye Kalkinma
Assuming the 90 days trading horizon Eczacibasi Yatirim Holding is expected to generate 1.63 times more return on investment than Turkiye Kalkinma. However, Eczacibasi Yatirim is 1.63 times more volatile than Turkiye Kalkinma Bankasi. It trades about 0.23 of its potential returns per unit of risk. Turkiye Kalkinma Bankasi is currently generating about 0.1 per unit of risk. If you would invest 18,100 in Eczacibasi Yatirim Holding on September 5, 2024 and sell it today you would earn a total of 2,230 from holding Eczacibasi Yatirim Holding or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eczacibasi Yatirim Holding vs. Turkiye Kalkinma Bankasi
Performance |
| Timeline |
| Eczacibasi Yatirim |
| Turkiye Kalkinma Bankasi |
Eczacibasi Yatirim and Turkiye Kalkinma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eczacibasi Yatirim and Turkiye Kalkinma
The main advantage of trading using opposite Eczacibasi Yatirim and Turkiye Kalkinma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eczacibasi Yatirim position performs unexpectedly, Turkiye Kalkinma 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 Turkiye Kalkinma will offset losses from the drop in Turkiye Kalkinma's long position.| Eczacibasi Yatirim vs. Turkiye Kalkinma Bankasi | Eczacibasi Yatirim vs. Sekerbank TAS | Eczacibasi Yatirim vs. Cuhadaroglu Metal Sanayi | Eczacibasi Yatirim vs. Gentas Genel Metal |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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