Correlation Between E Data and DO AG
Can any of the company-specific risk be diversified away by investing in both E Data and DO AG 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 E Data and DO AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Data Teknoloji Pazarlama and DO AG, you can compare the effects of market volatilities on E Data and DO AG 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 E Data with a short position of DO AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Data and DO AG.
Diversification Opportunities for E Data and DO AG
Good diversification
The 3 months correlation between EDATA and DOCO is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and DO AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DO AG and E Data 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 E Data Teknoloji Pazarlama are associated (or correlated) with DO AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DO AG has no effect on the direction of E Data i.e., E Data and DO AG go up and down completely randomly.
Pair Corralation between E Data and DO AG
Assuming the 90 days trading horizon E Data is expected to generate 2.16 times less return on investment than DO AG. But when comparing it to its historical volatility, E Data Teknoloji Pazarlama is 1.52 times less risky than DO AG. It trades about 0.18 of its potential returns per unit of risk. DO AG is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 521,000 in DO AG on September 12, 2024 and sell it today you would earn a total of 95,750 from holding DO AG or generate 18.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Data Teknoloji Pazarlama vs. DO AG
Performance |
| Timeline |
| E Data Teknoloji |
| DO AG |
E Data and DO AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Data and DO AG
The main advantage of trading using opposite E Data and DO AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data position performs unexpectedly, DO AG 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 DO AG will offset losses from the drop in DO AG's long position.| E Data vs. Sodas Sodyum Sanayi | E Data vs. Akcansa Cimento Sanayi | E Data vs. Bms Birlesik Metal | E Data vs. Sekerbank TAS |
| DO AG vs. Celebi Hava Servisi | DO AG vs. Brisa Bridgestone Sabanci | DO AG vs. Dogus Gayrimenkul Yatirim | DO AG vs. IZDEMIR Enerji Elektrik |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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