Correlation Between Eregli Demir and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Eregli Demir and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and SASA Polyester.
Diversification Opportunities for Eregli Demir and SASA Polyester
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eregli and SASA is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Eregli Demir i.e., Eregli Demir and SASA Polyester go up and down completely randomly.
Pair Corralation between Eregli Demir and SASA Polyester
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.79 times more return on investment than SASA Polyester. However, Eregli Demir ve is 1.26 times less risky than SASA Polyester. It trades about 0.05 of its potential returns per unit of risk. SASA Polyester Sanayi is currently generating about -0.04 per unit of risk. If you would invest 3,823 in Eregli Demir ve on August 28, 2024 and sell it today you would earn a total of 1,247 from holding Eregli Demir ve or generate 32.62% 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. SASA Polyester Sanayi
Performance |
| Timeline |
| Eregli Demir ve |
| SASA Polyester Sanayi |
Eregli Demir and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and SASA Polyester
The main advantage of trading using opposite Eregli Demir and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester's long position.| Eregli Demir vs. Qnb Finansbank AS | Eregli Demir vs. QNB Finans Finansal | Eregli Demir vs. Turkiye Kalkinma Bankasi | Eregli Demir vs. Kocaer Celik Sanayi |
| SASA Polyester vs. Qnb Finansbank AS | SASA Polyester vs. QNB Finans Finansal | SASA Polyester vs. Turkiye Kalkinma Bankasi | SASA Polyester vs. Kocaer Celik Sanayi |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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