Correlation Between Ege Gubre and Datagate Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Ege Gubre and Datagate Bilgisayar 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 Gubre and Datagate Bilgisayar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ege Gubre Sanayi and Datagate Bilgisayar Malzemeleri, you can compare the effects of market volatilities on Ege Gubre and Datagate Bilgisayar 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 Gubre with a short position of Datagate Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Gubre and Datagate Bilgisayar.
Diversification Opportunities for Ege Gubre and Datagate Bilgisayar
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ege and Datagate is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Ege Gubre Sanayi and Datagate Bilgisayar Malzemeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagate Bilgisayar and Ege Gubre 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 Gubre Sanayi are associated (or correlated) with Datagate Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagate Bilgisayar has no effect on the direction of Ege Gubre i.e., Ege Gubre and Datagate Bilgisayar go up and down completely randomly.
Pair Corralation between Ege Gubre and Datagate Bilgisayar
Assuming the 90 days trading horizon Ege Gubre Sanayi is expected to under-perform the Datagate Bilgisayar. But the stock apears to be less risky and, when comparing its historical volatility, Ege Gubre Sanayi is 1.93 times less risky than Datagate Bilgisayar. The stock trades about -0.33 of its potential returns per unit of risk. The Datagate Bilgisayar Malzemeleri is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,405 in Datagate Bilgisayar Malzemeleri on November 28, 2024 and sell it today you would earn a total of 575.00 from holding Datagate Bilgisayar Malzemeleri or generate 10.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Gubre Sanayi vs. Datagate Bilgisayar Malzemeler
Performance |
| Timeline |
| Ege Gubre Sanayi |
| Datagate Bilgisayar |
Ege Gubre and Datagate Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Gubre and Datagate Bilgisayar
The main advantage of trading using opposite Ege Gubre and Datagate Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Gubre position performs unexpectedly, Datagate Bilgisayar 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 Datagate Bilgisayar will offset losses from the drop in Datagate Bilgisayar's long position.| Ege Gubre vs. Sekerbank TAS | Ege Gubre vs. E Data Teknoloji Pazarlama | Ege Gubre vs. Cuhadaroglu Metal Sanayi | Ege Gubre vs. Politeknik Metal Sanayi |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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