Correlation Between Eregli Demir and Hektas Ticaret
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Hektas Ticaret 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 Hektas Ticaret 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 Hektas Ticaret TAS, you can compare the effects of market volatilities on Eregli Demir and Hektas Ticaret 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 Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Hektas Ticaret.
Diversification Opportunities for Eregli Demir and Hektas Ticaret
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eregli and Hektas is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS 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 Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Eregli Demir i.e., Eregli Demir and Hektas Ticaret go up and down completely randomly.
Pair Corralation between Eregli Demir and Hektas Ticaret
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.89 times more return on investment than Hektas Ticaret. However, Eregli Demir ve is 1.13 times less risky than Hektas Ticaret. It trades about 0.2 of its potential returns per unit of risk. Hektas Ticaret TAS is currently generating about -0.04 per unit of risk. If you would invest 4,620 in Eregli Demir ve on August 24, 2024 and sell it today you would earn a total of 360.00 from holding Eregli Demir ve or generate 7.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Hektas Ticaret TAS
Performance |
| Timeline |
| Eregli Demir ve |
| Hektas Ticaret TAS |
Eregli Demir and Hektas Ticaret Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Hektas Ticaret
The main advantage of trading using opposite Eregli Demir and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Hektas Ticaret 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 Hektas Ticaret will offset losses from the drop in Hektas Ticaret'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 |
| Hektas Ticaret vs. SASA Polyester Sanayi | Hektas Ticaret vs. Eregli Demir ve | Hektas Ticaret vs. Turkiye Sise ve | Hektas Ticaret vs. Ford Otomotiv Sanayi |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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