Correlation Between Ege Endustri and Ata Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Ege Endustri and Ata Gayrimenkul 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 Ege Endustri and Ata Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Endustri ve and Ata Gayrimenkul Yatirim, you can compare the effects of market volatilities on Ege Endustri and Ata Gayrimenkul 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 Ege Endustri with a short position of Ata Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and Ata Gayrimenkul.
Diversification Opportunities for Ege Endustri and Ata Gayrimenkul
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ege and Ata is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve and Ata Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ata Gayrimenkul Yatirim and Ege Endustri 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 Ege Endustri ve are associated (or correlated) with Ata Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ata Gayrimenkul Yatirim has no effect on the direction of Ege Endustri i.e., Ege Endustri and Ata Gayrimenkul go up and down completely randomly.
Pair Corralation between Ege Endustri and Ata Gayrimenkul
Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the Ata Gayrimenkul. In addition to that, Ege Endustri is 1.23 times more volatile than Ata Gayrimenkul Yatirim. It trades about -0.04 of its total potential returns per unit of risk. Ata Gayrimenkul Yatirim is currently generating about 0.0 per unit of volatility. If you would invest 1,275 in Ata Gayrimenkul Yatirim on September 2, 2024 and sell it today you would lose (4.00) from holding Ata Gayrimenkul Yatirim or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Endustri ve vs. Ata Gayrimenkul Yatirim
Performance |
| Timeline |
| Ege Endustri ve |
| Ata Gayrimenkul Yatirim |
Ege Endustri and Ata Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and Ata Gayrimenkul
The main advantage of trading using opposite Ege Endustri and Ata Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri position performs unexpectedly, Ata Gayrimenkul 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 Ata Gayrimenkul will offset losses from the drop in Ata Gayrimenkul's long position.| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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