Correlation Between Eminis Ambalaj and Dagi Giyim
Can any of the company-specific risk be diversified away by investing in both Eminis Ambalaj 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 Eminis Ambalaj and Dagi Giyim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eminis Ambalaj Sanayi and Dagi Giyim Sanayi, you can compare the effects of market volatilities on Eminis Ambalaj 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 Eminis Ambalaj with a short position of Dagi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eminis Ambalaj and Dagi Giyim.
Diversification Opportunities for Eminis Ambalaj and Dagi Giyim
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eminis and Dagi is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Eminis Ambalaj 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 Eminis Ambalaj 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 Eminis Ambalaj 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 Eminis Ambalaj i.e., Eminis Ambalaj and Dagi Giyim go up and down completely randomly.
Pair Corralation between Eminis Ambalaj and Dagi Giyim
Assuming the 90 days trading horizon Eminis Ambalaj Sanayi is expected to generate 1.58 times more return on investment than Dagi Giyim. However, Eminis Ambalaj is 1.58 times more volatile than Dagi Giyim Sanayi. It trades about 0.09 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 4,488 in Eminis Ambalaj Sanayi on October 11, 2024 and sell it today you would earn a total of 21,612 from holding Eminis Ambalaj Sanayi or generate 481.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eminis Ambalaj Sanayi vs. Dagi Giyim Sanayi
Performance |
| Timeline |
| Eminis Ambalaj Sanayi |
| Dagi Giyim Sanayi |
Eminis Ambalaj and Dagi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eminis Ambalaj and Dagi Giyim
The main advantage of trading using opposite Eminis Ambalaj and Dagi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eminis Ambalaj 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.| Eminis Ambalaj vs. Galatasaray Sportif Sinai | Eminis Ambalaj vs. Akbank TAS | Eminis Ambalaj vs. KOC METALURJI | Eminis Ambalaj vs. Koza Anadolu 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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