Correlation Between Eregli Demir and Oyak Cimento
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Oyak Cimento 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 Oyak Cimento 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 Oyak Cimento Fabrikalari, you can compare the effects of market volatilities on Eregli Demir and Oyak Cimento 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 Oyak Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Oyak Cimento.
Diversification Opportunities for Eregli Demir and Oyak Cimento
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Eregli and Oyak is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Oyak Cimento Fabrikalari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oyak Cimento Fabrikalari 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 Oyak Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oyak Cimento Fabrikalari has no effect on the direction of Eregli Demir i.e., Eregli Demir and Oyak Cimento go up and down completely randomly.
Pair Corralation between Eregli Demir and Oyak Cimento
Assuming the 90 days trading horizon Eregli Demir ve is expected to under-perform the Oyak Cimento. But the stock apears to be less risky and, when comparing its historical volatility, Eregli Demir ve is 1.33 times less risky than Oyak Cimento. The stock trades about -0.17 of its potential returns per unit of risk. The Oyak Cimento Fabrikalari is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,284 in Oyak Cimento Fabrikalari on November 8, 2024 and sell it today you would earn a total of 264.00 from holding Oyak Cimento Fabrikalari or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Oyak Cimento Fabrikalari
Performance |
| Timeline |
| Eregli Demir ve |
| Oyak Cimento Fabrikalari |
Eregli Demir and Oyak Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Oyak Cimento
The main advantage of trading using opposite Eregli Demir and Oyak Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Oyak Cimento 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 Oyak Cimento will offset losses from the drop in Oyak Cimento's long position.| Eregli Demir vs. Gentas Genel Metal | Eregli Demir vs. Ege Seramik Sanayi | Eregli Demir vs. Ege Gubre Sanayi | Eregli Demir vs. Brisa Bridgestone Sabanci |
| Oyak Cimento vs. MEGA METAL | Oyak Cimento vs. E Data Teknoloji Pazarlama | Oyak Cimento vs. Politeknik Metal Sanayi | Oyak Cimento vs. KOC METALURJI |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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