Correlation Between E Data and Tumosan
Can any of the company-specific risk be diversified away by investing in both E Data and Tumosan 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 Tumosan 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 Tumosan Motor ve, you can compare the effects of market volatilities on E Data and Tumosan 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 Tumosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Data and Tumosan.
Diversification Opportunities for E Data and Tumosan
Poor diversification
The 3 months correlation between EDATA and Tumosan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and Tumosan Motor ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tumosan Motor ve 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 Tumosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tumosan Motor ve has no effect on the direction of E Data i.e., E Data and Tumosan go up and down completely randomly.
Pair Corralation between E Data and Tumosan
Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to under-perform the Tumosan. But the stock apears to be less risky and, when comparing its historical volatility, E Data Teknoloji Pazarlama is 1.05 times less risky than Tumosan. The stock trades about -0.02 of its potential returns per unit of risk. The Tumosan Motor ve is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 9,190 in Tumosan Motor ve on September 4, 2024 and sell it today you would earn a total of 1,980 from holding Tumosan Motor ve or generate 21.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Data Teknoloji Pazarlama vs. Tumosan Motor ve
Performance |
| Timeline |
| E Data Teknoloji |
| Tumosan Motor ve |
E Data and Tumosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Data and Tumosan
The main advantage of trading using opposite E Data and Tumosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data position performs unexpectedly, Tumosan 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 Tumosan will offset losses from the drop in Tumosan's long position.| E Data vs. MEGA METAL | E Data vs. Cuhadaroglu Metal Sanayi | E Data vs. Silverline Endustri ve | E Data vs. Turkish Airlines |
| Tumosan vs. Akcansa Cimento Sanayi | Tumosan vs. MEGA METAL | Tumosan vs. E Data Teknoloji Pazarlama | Tumosan vs. Koza Anadolu Metal |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |