Correlation Between Ege Gubre and Dogus Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Ege Gubre and Dogus 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 Gubre and Dogus Gayrimenkul 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 Dogus Gayrimenkul Yatirim, you can compare the effects of market volatilities on Ege Gubre and Dogus 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 Gubre with a short position of Dogus Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ege Gubre and Dogus Gayrimenkul.
Diversification Opportunities for Ege Gubre and Dogus Gayrimenkul
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ege and Dogus is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Ege Gubre Sanayi and Dogus Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Gayrimenkul Yatirim 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 Dogus Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Gayrimenkul Yatirim has no effect on the direction of Ege Gubre i.e., Ege Gubre and Dogus Gayrimenkul go up and down completely randomly.
Pair Corralation between Ege Gubre and Dogus Gayrimenkul
Assuming the 90 days trading horizon Ege Gubre is expected to generate 1.22 times less return on investment than Dogus Gayrimenkul. In addition to that, Ege Gubre is 1.04 times more volatile than Dogus Gayrimenkul Yatirim. It trades about 0.03 of its total potential returns per unit of risk. Dogus Gayrimenkul Yatirim is currently generating about 0.04 per unit of volatility. If you would invest 3,500 in Dogus Gayrimenkul Yatirim on August 26, 2024 and sell it today you would earn a total of 794.00 from holding Dogus Gayrimenkul Yatirim or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ege Gubre Sanayi vs. Dogus Gayrimenkul Yatirim
Performance |
| Timeline |
| Ege Gubre Sanayi |
| Dogus Gayrimenkul Yatirim |
Ege Gubre and Dogus Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ege Gubre and Dogus Gayrimenkul
The main advantage of trading using opposite Ege Gubre and Dogus Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ege Gubre position performs unexpectedly, Dogus 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 Dogus Gayrimenkul will offset losses from the drop in Dogus Gayrimenkul's long position.| Ege Gubre vs. ICBC Turkey Bank | Ege Gubre vs. Akcansa Cimento Sanayi | Ege Gubre vs. Koza Anadolu Metal | Ege Gubre vs. CEO Event Medya |
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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