Correlation Between E Data and Karsan Otomotiv
Can any of the company-specific risk be diversified away by investing in both E Data and Karsan Otomotiv 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 Karsan Otomotiv 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 Karsan Otomotiv Sanayi, you can compare the effects of market volatilities on E Data and Karsan Otomotiv 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 Karsan Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Data and Karsan Otomotiv.
Diversification Opportunities for E Data and Karsan Otomotiv
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between EDATA and Karsan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and Karsan Otomotiv Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karsan Otomotiv Sanayi 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 Karsan Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karsan Otomotiv Sanayi has no effect on the direction of E Data i.e., E Data and Karsan Otomotiv go up and down completely randomly.
Pair Corralation between E Data and Karsan Otomotiv
Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to generate 0.76 times more return on investment than Karsan Otomotiv. However, E Data Teknoloji Pazarlama is 1.32 times less risky than Karsan Otomotiv. It trades about -0.17 of its potential returns per unit of risk. Karsan Otomotiv Sanayi is currently generating about -0.29 per unit of risk. If you would invest 1,465 in E Data Teknoloji Pazarlama on August 30, 2024 and sell it today you would lose (110.00) from holding E Data Teknoloji Pazarlama or give up 7.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Data Teknoloji Pazarlama vs. Karsan Otomotiv Sanayi
Performance |
| Timeline |
| E Data Teknoloji |
| Karsan Otomotiv Sanayi |
E Data and Karsan Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Data and Karsan Otomotiv
The main advantage of trading using opposite E Data and Karsan Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data position performs unexpectedly, Karsan Otomotiv 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 Karsan Otomotiv will offset losses from the drop in Karsan Otomotiv's long position.| E Data vs. Silverline Endustri ve | E Data vs. MEGA METAL | E Data vs. Akbank TAS | E Data vs. Mackolik Internet Hizmetleri |
| Karsan Otomotiv vs. E Data Teknoloji Pazarlama | Karsan Otomotiv vs. Koza Anadolu Metal | Karsan Otomotiv vs. Akbank TAS | Karsan Otomotiv vs. ICBC Turkey Bank |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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