Correlation Between Ege Endustri and Is Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Ege Endustri and Is 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 Is 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 Is Gayrimenkul Yatirim, you can compare the effects of market volatilities on Ege Endustri and Is 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 Is Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and Is Gayrimenkul.
Diversification Opportunities for Ege Endustri and Is Gayrimenkul
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ege and ISGYO is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve and Is Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Is 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 Is Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Is Gayrimenkul Yatirim has no effect on the direction of Ege Endustri i.e., Ege Endustri and Is Gayrimenkul go up and down completely randomly.
Pair Corralation between Ege Endustri and Is Gayrimenkul
Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the Is Gayrimenkul. In addition to that, Ege Endustri is 1.0 times more volatile than Is Gayrimenkul Yatirim. It trades about -0.11 of its total potential returns per unit of risk. Is Gayrimenkul Yatirim is currently generating about 0.42 per unit of volatility. If you would invest 1,632 in Is Gayrimenkul Yatirim on September 3, 2024 and sell it today you would earn a total of 352.00 from holding Is Gayrimenkul Yatirim or generate 21.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Endustri ve vs. Is Gayrimenkul Yatirim
Performance |
| Timeline |
| Ege Endustri ve |
| Is Gayrimenkul Yatirim |
Ege Endustri and Is Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and Is Gayrimenkul
The main advantage of trading using opposite Ege Endustri and Is Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri position performs unexpectedly, Is 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 Is Gayrimenkul will offset losses from the drop in Is Gayrimenkul's long position.| Ege Endustri vs. Koc Holding AS | Ege Endustri vs. Eregli Demir ve | Ege Endustri vs. Turkiye Sise ve | Ege Endustri vs. Turkcell Iletisim Hizmetleri |
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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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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