Correlation Between Eregli Demir and Aselsan Elektronik
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Aselsan Elektronik 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 Eregli Demir and Aselsan Elektronik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eregli Demir ve and Aselsan Elektronik Sanayi, you can compare the effects of market volatilities on Eregli Demir and Aselsan Elektronik 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 Eregli Demir with a short position of Aselsan Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Aselsan Elektronik.
Diversification Opportunities for Eregli Demir and Aselsan Elektronik
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eregli and Aselsan is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Aselsan Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aselsan Elektronik Sanayi and Eregli Demir 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 Eregli Demir ve are associated (or correlated) with Aselsan Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aselsan Elektronik Sanayi has no effect on the direction of Eregli Demir i.e., Eregli Demir and Aselsan Elektronik go up and down completely randomly.
Pair Corralation between Eregli Demir and Aselsan Elektronik
Assuming the 90 days trading horizon Eregli Demir is expected to generate 2.82 times less return on investment than Aselsan Elektronik. But when comparing it to its historical volatility, Eregli Demir ve is 1.29 times less risky than Aselsan Elektronik. It trades about 0.07 of its potential returns per unit of risk. Aselsan Elektronik Sanayi is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,701 in Aselsan Elektronik Sanayi on August 28, 2024 and sell it today you would earn a total of 1,199 from holding Aselsan Elektronik Sanayi or generate 21.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Aselsan Elektronik Sanayi
Performance |
| Timeline |
| Eregli Demir ve |
| Aselsan Elektronik Sanayi |
Eregli Demir and Aselsan Elektronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Aselsan Elektronik
The main advantage of trading using opposite Eregli Demir and Aselsan Elektronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Aselsan Elektronik 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 Aselsan Elektronik will offset losses from the drop in Aselsan Elektronik's long position.| Eregli Demir vs. Qnb Finansbank AS | Eregli Demir vs. QNB Finans Finansal | Eregli Demir vs. Turkiye Kalkinma Bankasi | Eregli Demir vs. Kocaer Celik Sanayi |
| Aselsan Elektronik vs. QNB Finans Finansal | Aselsan Elektronik vs. Pamel Yenilenebilir Elektrik | Aselsan Elektronik vs. Brisa Bridgestone Sabanci | Aselsan Elektronik vs. Dogus Gayrimenkul Yatirim |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |