Correlation Between Eregli Demir and Turkiye Is
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Turkiye Is 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 Turkiye Is 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 Turkiye Is Bankasi, you can compare the effects of market volatilities on Eregli Demir and Turkiye Is 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 Turkiye Is. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Turkiye Is.
Diversification Opportunities for Eregli Demir and Turkiye Is
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eregli and Turkiye is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Turkiye Is Bankasi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Is Bankasi 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 Turkiye Is. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Is Bankasi has no effect on the direction of Eregli Demir i.e., Eregli Demir and Turkiye Is go up and down completely randomly.
Pair Corralation between Eregli Demir and Turkiye Is
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.57 times more return on investment than Turkiye Is. However, Eregli Demir ve is 1.76 times less risky than Turkiye Is. It trades about 0.03 of its potential returns per unit of risk. Turkiye Is Bankasi is currently generating about 0.01 per unit of risk. If you would invest 2,458 in Eregli Demir ve on September 2, 2024 and sell it today you would earn a total of 120.00 from holding Eregli Demir ve or generate 4.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Turkiye Is Bankasi
Performance |
| Timeline |
| Eregli Demir ve |
| Turkiye Is Bankasi |
Eregli Demir and Turkiye Is Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Turkiye Is
The main advantage of trading using opposite Eregli Demir and Turkiye Is positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Turkiye Is 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 Turkiye Is will offset losses from the drop in Turkiye Is' 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 |
| Turkiye Is vs. Turkiye Halk Bankasi | Turkiye Is vs. Turkiye Vakiflar Bankasi | Turkiye Is vs. Turkiye Garanti Bankasi | Turkiye Is vs. Yapi ve Kredi |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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