Correlation Between Eminis Ambalaj and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Eminis Ambalaj and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Eminis Ambalaj and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eminis Ambalaj and Dow Jones.
Diversification Opportunities for Eminis Ambalaj and Dow Jones
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eminis and Dow is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Eminis Ambalaj Sanayi and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Eminis Ambalaj i.e., Eminis Ambalaj and Dow Jones go up and down completely randomly.
Pair Corralation between Eminis Ambalaj and Dow Jones
Assuming the 90 days trading horizon Eminis Ambalaj Sanayi is expected to under-perform the Dow Jones. In addition to that, Eminis Ambalaj is 6.6 times more volatile than Dow Jones Industrial. It trades about -0.07 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.16 per unit of volatility. If you would invest 3,857,103 in Dow Jones Industrial on August 30, 2024 and sell it today you would earn a total of 615,103 from holding Dow Jones Industrial or generate 15.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Eminis Ambalaj Sanayi vs. Dow Jones Industrial
Performance |
| Timeline |
Eminis Ambalaj and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Eminis Ambalaj Sanayi
Pair trading matchups for Eminis Ambalaj
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Eminis Ambalaj and Dow Jones
The main advantage of trading using opposite Eminis Ambalaj and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eminis Ambalaj position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Eminis Ambalaj vs. Cuhadaroglu Metal Sanayi | Eminis Ambalaj vs. Koza Anadolu Metal | Eminis Ambalaj vs. Mackolik Internet Hizmetleri | Eminis Ambalaj vs. ICBC Turkey Bank |
| Dow Jones vs. Skillful Craftsman Education | Dow Jones vs. Acco Brands | Dow Jones vs. Cracker Barrel Old | Dow Jones vs. Coursera |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |