Correlation Between Ege Endustri and Hektas Ticaret
Can any of the company-specific risk be diversified away by investing in both Ege Endustri and Hektas Ticaret 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 Hektas Ticaret 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 Hektas Ticaret TAS, you can compare the effects of market volatilities on Ege Endustri and Hektas Ticaret 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 Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and Hektas Ticaret.
Diversification Opportunities for Ege Endustri and Hektas Ticaret
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ege and Hektas is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS 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 Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Ege Endustri i.e., Ege Endustri and Hektas Ticaret go up and down completely randomly.
Pair Corralation between Ege Endustri and Hektas Ticaret
Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the Hektas Ticaret. But the stock apears to be less risky and, when comparing its historical volatility, Ege Endustri ve is 1.1 times less risky than Hektas Ticaret. The stock trades about -0.08 of its potential returns per unit of risk. The Hektas Ticaret TAS is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 485.00 in Hektas Ticaret TAS on October 17, 2024 and sell it today you would lose (107.00) from holding Hektas Ticaret TAS or give up 22.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Endustri ve vs. Hektas Ticaret TAS
Performance |
| Timeline |
| Ege Endustri ve |
| Hektas Ticaret TAS |
Ege Endustri and Hektas Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and Hektas Ticaret
The main advantage of trading using opposite Ege Endustri and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri position performs unexpectedly, Hektas Ticaret 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 Hektas Ticaret will offset losses from the drop in Hektas Ticaret'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 |
| Hektas Ticaret vs. SASA Polyester Sanayi | Hektas Ticaret vs. Eregli Demir ve | Hektas Ticaret vs. Turkiye Sise ve | Hektas Ticaret vs. Ford Otomotiv Sanayi |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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