Correlation Between Eregli Demir and Kordsa Global
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Kordsa Global 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 Kordsa Global 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 Kordsa Global Endustriyel, you can compare the effects of market volatilities on Eregli Demir and Kordsa Global 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 Kordsa Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Kordsa Global.
Diversification Opportunities for Eregli Demir and Kordsa Global
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eregli and Kordsa is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Kordsa Global Endustriyel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kordsa Global Endustriyel 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 Kordsa Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kordsa Global Endustriyel has no effect on the direction of Eregli Demir i.e., Eregli Demir and Kordsa Global go up and down completely randomly.
Pair Corralation between Eregli Demir and Kordsa Global
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.87 times more return on investment than Kordsa Global. However, Eregli Demir ve is 1.15 times less risky than Kordsa Global. It trades about -0.08 of its potential returns per unit of risk. Kordsa Global Endustriyel is currently generating about -0.07 per unit of risk. If you would invest 5,350 in Eregli Demir ve on August 29, 2024 and sell it today you would lose (340.00) from holding Eregli Demir ve or give up 6.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Kordsa Global Endustriyel
Performance |
| Timeline |
| Eregli Demir ve |
| Kordsa Global Endustriyel |
Eregli Demir and Kordsa Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Kordsa Global
The main advantage of trading using opposite Eregli Demir and Kordsa Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Kordsa Global 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 Kordsa Global will offset losses from the drop in Kordsa Global'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 |
| Kordsa Global vs. Aksa Akrilik Kimya | Kordsa Global vs. Turkiye Sise ve | Kordsa Global vs. Eregli Demir ve | Kordsa Global vs. Tofas Turk Otomobil |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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