Correlation Between Ekiz Kimya and Dagi Giyim
Can any of the company-specific risk be diversified away by investing in both Ekiz Kimya and Dagi Giyim 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 Ekiz Kimya and Dagi Giyim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ekiz Kimya Sanayi and Dagi Giyim Sanayi, you can compare the effects of market volatilities on Ekiz Kimya and Dagi Giyim 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 Ekiz Kimya with a short position of Dagi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekiz Kimya and Dagi Giyim.
Diversification Opportunities for Ekiz Kimya and Dagi Giyim
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ekiz and Dagi is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Ekiz Kimya Sanayi and Dagi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Giyim Sanayi and Ekiz Kimya 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 Ekiz Kimya Sanayi are associated (or correlated) with Dagi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Giyim Sanayi has no effect on the direction of Ekiz Kimya i.e., Ekiz Kimya and Dagi Giyim go up and down completely randomly.
Pair Corralation between Ekiz Kimya and Dagi Giyim
Assuming the 90 days trading horizon Ekiz Kimya Sanayi is expected to generate 1.31 times more return on investment than Dagi Giyim. However, Ekiz Kimya is 1.31 times more volatile than Dagi Giyim Sanayi. It trades about 0.07 of its potential returns per unit of risk. Dagi Giyim Sanayi is currently generating about 0.07 per unit of risk. If you would invest 1,864 in Ekiz Kimya Sanayi on October 11, 2024 and sell it today you would earn a total of 3,786 from holding Ekiz Kimya Sanayi or generate 203.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekiz Kimya Sanayi vs. Dagi Giyim Sanayi
Performance |
| Timeline |
| Ekiz Kimya Sanayi |
| Dagi Giyim Sanayi |
Ekiz Kimya and Dagi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekiz Kimya and Dagi Giyim
The main advantage of trading using opposite Ekiz Kimya and Dagi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekiz Kimya position performs unexpectedly, Dagi Giyim 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 Dagi Giyim will offset losses from the drop in Dagi Giyim's long position.| Ekiz Kimya vs. Turkiye Kalkinma Bankasi | Ekiz Kimya vs. KOC METALURJI | Ekiz Kimya vs. E Data Teknoloji Pazarlama | Ekiz Kimya vs. Bms Birlesik Metal |
| Dagi Giyim vs. Eminis Ambalaj Sanayi | Dagi Giyim vs. Ekiz Kimya Sanayi | Dagi Giyim vs. Brisa Bridgestone Sabanci | Dagi Giyim vs. IZDEMIR Enerji Elektrik |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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