Correlation Between Ege Endustri and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Ege Endustri and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Ege Endustri and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Endustri and SASA Polyester.
Diversification Opportunities for Ege Endustri and SASA Polyester
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Ege and SASA is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Ege Endustri i.e., Ege Endustri and SASA Polyester go up and down completely randomly.
Pair Corralation between Ege Endustri and SASA Polyester
Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the SASA Polyester. But the stock apears to be less risky and, when comparing its historical volatility, Ege Endustri ve is 1.39 times less risky than SASA Polyester. The stock trades about -0.12 of its potential returns per unit of risk. The SASA Polyester Sanayi is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 384.00 in SASA Polyester Sanayi on September 15, 2024 and sell it today you would earn a total of 48.00 from holding SASA Polyester Sanayi or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Endustri ve vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Ege Endustri ve |
| SASA Polyester Sanayi |
Ege Endustri and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Endustri and SASA Polyester
The main advantage of trading using opposite Ege Endustri and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Endustri position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester'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 |
| SASA Polyester vs. Ayes Celik Hasir | SASA Polyester vs. Trend Gayrimenkul Yatirim | SASA Polyester vs. Ege Endustri ve | SASA Polyester vs. Alarko Carrier 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 Stocks Directory module to find actively traded stocks across global markets.
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