Correlation Between Eregli Demir and Marmaris Altinyunus
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Marmaris Altinyunus 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 Marmaris Altinyunus 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 Marmaris Altinyunus Turistik, you can compare the effects of market volatilities on Eregli Demir and Marmaris Altinyunus 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 Marmaris Altinyunus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Marmaris Altinyunus.
Diversification Opportunities for Eregli Demir and Marmaris Altinyunus
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eregli and Marmaris is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Marmaris Altinyunus Turistik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marmaris Altinyunus 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 Marmaris Altinyunus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marmaris Altinyunus has no effect on the direction of Eregli Demir i.e., Eregli Demir and Marmaris Altinyunus go up and down completely randomly.
Pair Corralation between Eregli Demir and Marmaris Altinyunus
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.58 times more return on investment than Marmaris Altinyunus. However, Eregli Demir ve is 1.71 times less risky than Marmaris Altinyunus. It trades about 0.07 of its potential returns per unit of risk. Marmaris Altinyunus Turistik is currently generating about 0.0 per unit of risk. If you would invest 1,878 in Eregli Demir ve on September 4, 2024 and sell it today you would earn a total of 726.00 from holding Eregli Demir ve or generate 38.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.59% |
| Values | Daily Returns |
Eregli Demir ve vs. Marmaris Altinyunus Turistik
Performance |
| Timeline |
| Eregli Demir ve |
| Marmaris Altinyunus |
Eregli Demir and Marmaris Altinyunus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Marmaris Altinyunus
The main advantage of trading using opposite Eregli Demir and Marmaris Altinyunus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Marmaris Altinyunus 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 Marmaris Altinyunus will offset losses from the drop in Marmaris Altinyunus' 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 |
| Marmaris Altinyunus vs. Gentas Genel Metal | Marmaris Altinyunus vs. MEGA METAL | Marmaris Altinyunus vs. Bms Birlesik Metal | Marmaris Altinyunus vs. ICBC Turkey Bank |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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