Correlation Between Eregli Demir and Ayes Celik
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Ayes Celik 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 Ayes Celik 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 Ayes Celik Hasir, you can compare the effects of market volatilities on Eregli Demir and Ayes Celik 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 Ayes Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Ayes Celik.
Diversification Opportunities for Eregli Demir and Ayes Celik
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eregli and Ayes is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Ayes Celik Hasir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayes Celik Hasir 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 Ayes Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayes Celik Hasir has no effect on the direction of Eregli Demir i.e., Eregli Demir and Ayes Celik go up and down completely randomly.
Pair Corralation between Eregli Demir and Ayes Celik
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 1.06 times more return on investment than Ayes Celik. However, Eregli Demir is 1.06 times more volatile than Ayes Celik Hasir. It trades about 0.19 of its potential returns per unit of risk. Ayes Celik Hasir is currently generating about -0.23 per unit of risk. If you would invest 2,397 in Eregli Demir ve on September 2, 2024 and sell it today you would earn a total of 181.00 from holding Eregli Demir ve or generate 7.55% 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. Ayes Celik Hasir
Performance |
| Timeline |
| Eregli Demir ve |
| Ayes Celik Hasir |
Eregli Demir and Ayes Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Ayes Celik
The main advantage of trading using opposite Eregli Demir and Ayes Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Ayes Celik 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 Ayes Celik will offset losses from the drop in Ayes Celik's long position.| Eregli Demir vs. Turkiye Sise ve | Eregli Demir vs. Turkiye Petrol Rafinerileri | Eregli Demir vs. Ford Otomotiv Sanayi | Eregli Demir vs. Petkim Petrokimya Holding |
| Ayes Celik vs. Eregli Demir ve | Ayes Celik vs. Iskenderun Demir ve | Ayes Celik vs. Borusan Yatirim ve | Ayes Celik vs. Kardemir Karabuk Demir |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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