Correlation Between Eregli Demir and Cemtas Celik
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Cemtas 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 Cemtas 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 Cemtas Celik Makina, you can compare the effects of market volatilities on Eregli Demir and Cemtas 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 Cemtas Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Cemtas Celik.
Diversification Opportunities for Eregli Demir and Cemtas Celik
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eregli and Cemtas is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina 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 Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Eregli Demir i.e., Eregli Demir and Cemtas Celik go up and down completely randomly.
Pair Corralation between Eregli Demir and Cemtas Celik
Assuming the 90 days trading horizon Eregli Demir ve is expected to under-perform the Cemtas Celik. In addition to that, Eregli Demir is 1.0 times more volatile than Cemtas Celik Makina. It trades about -0.08 of its total potential returns per unit of risk. Cemtas Celik Makina is currently generating about 0.0 per unit of volatility. If you would invest 887.00 in Cemtas Celik Makina on August 29, 2024 and sell it today you would lose (4.00) from holding Cemtas Celik Makina or give up 0.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.62% |
| Values | Daily Returns |
Eregli Demir ve vs. Cemtas Celik Makina
Performance |
| Timeline |
| Eregli Demir ve |
| Cemtas Celik Makina |
Eregli Demir and Cemtas Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Cemtas Celik
The main advantage of trading using opposite Eregli Demir and Cemtas Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Cemtas 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 Cemtas Celik will offset losses from the drop in Cemtas Celik's long position.| Eregli Demir vs. Is Yatirim Ortakligi | Eregli Demir vs. Euro Kapital Yatirim | Eregli Demir vs. Atlas Menkul Kiymetler | Eregli Demir vs. Dogus Gayrimenkul Yatirim |
| Cemtas Celik vs. Koza Anadolu Metal | Cemtas Celik vs. Cuhadaroglu Metal Sanayi | Cemtas Celik vs. Turkiye Kalkinma Bankasi | Cemtas Celik vs. Gentas Genel Metal |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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