Correlation Between Ekiz Kimya and Kent Gida
Can any of the company-specific risk be diversified away by investing in both Ekiz Kimya and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Ekiz Kimya and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ekiz Kimya and Kent Gida.
Diversification Opportunities for Ekiz Kimya and Kent Gida
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ekiz and Kent is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ekiz Kimya Sanayi and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Ekiz Kimya i.e., Ekiz Kimya and Kent Gida go up and down completely randomly.
Pair Corralation between Ekiz Kimya and Kent Gida
Assuming the 90 days trading horizon Ekiz Kimya is expected to generate 2.0 times less return on investment than Kent Gida. But when comparing it to its historical volatility, Ekiz Kimya Sanayi is 1.18 times less risky than Kent Gida. It trades about 0.05 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 48,000 in Kent Gida Maddeleri on September 12, 2024 and sell it today you would earn a total of 43,700 from holding Kent Gida Maddeleri or generate 91.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ekiz Kimya Sanayi vs. Kent Gida Maddeleri
Performance |
| Timeline |
| Ekiz Kimya Sanayi |
| Kent Gida Maddeleri |
Ekiz Kimya and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ekiz Kimya and Kent Gida
The main advantage of trading using opposite Ekiz Kimya and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ekiz Kimya position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida's long position.| Ekiz Kimya vs. Eregli Demir ve | Ekiz Kimya vs. Turkiye Petrol Rafinerileri | Ekiz Kimya vs. Turkiye Sise ve | Ekiz Kimya vs. Ford Otomotiv Sanayi |
| Kent Gida vs. Eregli Demir ve | Kent Gida vs. Turkiye Petrol Rafinerileri | Kent Gida vs. Turkiye Sise ve | Kent Gida vs. Ford Otomotiv 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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