Correlation Between Eregli Demir and Kent Gida
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Eregli Demir and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Kent Gida.
Diversification Opportunities for Eregli Demir and Kent Gida
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eregli and Kent is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Eregli Demir i.e., Eregli Demir and Kent Gida go up and down completely randomly.
Pair Corralation between Eregli Demir and Kent Gida
Assuming the 90 days trading horizon Eregli Demir ve is expected to under-perform the Kent Gida. But the stock apears to be less risky and, when comparing its historical volatility, Eregli Demir ve is 1.29 times less risky than Kent Gida. The stock trades about -0.12 of its potential returns per unit of risk. The Kent Gida Maddeleri is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 87,650 in Kent Gida Maddeleri on November 29, 2024 and sell it today you would earn a total of 2,550 from holding Kent Gida Maddeleri or generate 2.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Eregli Demir ve vs. Kent Gida Maddeleri
Performance |
| Timeline |
| Eregli Demir ve |
| Kent Gida Maddeleri |
Eregli Demir and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Kent Gida
The main advantage of trading using opposite Eregli Demir and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida'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 |
| Kent Gida vs. Cuhadaroglu Metal Sanayi | Kent Gida vs. Politeknik Metal Sanayi | Kent Gida vs. KOC METALURJI | Kent Gida vs. Akbank TAS |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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