Correlation Between Ege Endustri and Celebi Hava
Can any of the company-specific risk be diversified away by investing in both Ege Endustri and Celebi Hava 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 Celebi Hava 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 Celebi Hava Servisi, you can compare the effects of market volatilities on Ege Endustri and Celebi Hava 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 Celebi Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and Celebi Hava.
Diversification Opportunities for Ege Endustri and Celebi Hava
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ege and Celebi is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve and Celebi Hava Servisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebi Hava Servisi 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 Celebi Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebi Hava Servisi has no effect on the direction of Ege Endustri i.e., Ege Endustri and Celebi Hava go up and down completely randomly.
Pair Corralation between Ege Endustri and Celebi Hava
Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the Celebi Hava. But the stock apears to be less risky and, when comparing its historical volatility, Ege Endustri ve is 1.06 times less risky than Celebi Hava. The stock trades about -0.03 of its potential returns per unit of risk. The Celebi Hava Servisi is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 179,900 in Celebi Hava Servisi on August 28, 2024 and sell it today you would earn a total of 42,600 from holding Celebi Hava Servisi or generate 23.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Endustri ve vs. Celebi Hava Servisi
Performance |
| Timeline |
| Ege Endustri ve |
| Celebi Hava Servisi |
Ege Endustri and Celebi Hava Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and Celebi Hava
The main advantage of trading using opposite Ege Endustri and Celebi Hava positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri position performs unexpectedly, Celebi Hava 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 Celebi Hava will offset losses from the drop in Celebi Hava's long position.| Ege Endustri vs. Qnb Finansbank AS | Ege Endustri vs. Kent Gida Maddeleri | Ege Endustri vs. QNB Finans Finansal | Ege Endustri vs. Turkiye Kalkinma Bankasi |
| Celebi Hava vs. QNB Finans Finansal | Celebi Hava vs. Pamel Yenilenebilir Elektrik | Celebi Hava vs. Brisa Bridgestone Sabanci | Celebi Hava vs. Dogus Gayrimenkul Yatirim |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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