Correlation Between Eminis Ambalaj and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Eminis Ambalaj and Koza Anadolu 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 Koza Anadolu 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 Koza Anadolu Metal, you can compare the effects of market volatilities on Eminis Ambalaj and Koza Anadolu 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 Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eminis Ambalaj and Koza Anadolu.
Diversification Opportunities for Eminis Ambalaj and Koza Anadolu
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eminis and Koza is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Eminis Ambalaj Sanayi and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal 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 Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of Eminis Ambalaj i.e., Eminis Ambalaj and Koza Anadolu go up and down completely randomly.
Pair Corralation between Eminis Ambalaj and Koza Anadolu
Assuming the 90 days trading horizon Eminis Ambalaj is expected to generate 4.47 times less return on investment than Koza Anadolu. In addition to that, Eminis Ambalaj is 1.57 times more volatile than Koza Anadolu Metal. It trades about 0.03 of its total potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.23 per unit of volatility. If you would invest 6,650 in Koza Anadolu Metal on October 25, 2024 and sell it today you would earn a total of 720.00 from holding Koza Anadolu Metal or generate 10.83% 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. Koza Anadolu Metal
Performance |
| Timeline |
| Eminis Ambalaj Sanayi |
| Koza Anadolu Metal |
Eminis Ambalaj and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eminis Ambalaj and Koza Anadolu
The main advantage of trading using opposite Eminis Ambalaj and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eminis Ambalaj position performs unexpectedly, Koza Anadolu 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 Koza Anadolu will offset losses from the drop in Koza Anadolu's long position.| Eminis Ambalaj vs. Bms Birlesik Metal | Eminis Ambalaj vs. Akcansa Cimento Sanayi | Eminis Ambalaj vs. Politeknik Metal Sanayi | Eminis Ambalaj vs. ICBC Turkey Bank |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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