Correlation Between Eregli Demir and Turk Telekomunikasyon
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Turk Telekomunikasyon 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 Turk Telekomunikasyon 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 Turk Telekomunikasyon AS, you can compare the effects of market volatilities on Eregli Demir and Turk Telekomunikasyon 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 Turk Telekomunikasyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Turk Telekomunikasyon.
Diversification Opportunities for Eregli Demir and Turk Telekomunikasyon
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eregli and Turk is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Turk Telekomunikasyon AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Telekomunikasyon 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 Turk Telekomunikasyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Telekomunikasyon has no effect on the direction of Eregli Demir i.e., Eregli Demir and Turk Telekomunikasyon go up and down completely randomly.
Pair Corralation between Eregli Demir and Turk Telekomunikasyon
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 1.01 times more return on investment than Turk Telekomunikasyon. However, Eregli Demir is 1.01 times more volatile than Turk Telekomunikasyon AS. It trades about 0.14 of its potential returns per unit of risk. Turk Telekomunikasyon AS is currently generating about -0.08 per unit of risk. If you would invest 2,392 in Eregli Demir ve on August 31, 2024 and sell it today you would earn a total of 130.00 from holding Eregli Demir ve or generate 5.43% 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. Turk Telekomunikasyon AS
Performance |
| Timeline |
| Eregli Demir ve |
| Turk Telekomunikasyon |
Eregli Demir and Turk Telekomunikasyon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Turk Telekomunikasyon
The main advantage of trading using opposite Eregli Demir and Turk Telekomunikasyon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Turk Telekomunikasyon 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 Turk Telekomunikasyon will offset losses from the drop in Turk Telekomunikasyon'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 |
| Turk Telekomunikasyon vs. Trabzon Liman Isletmeciligi | Turk Telekomunikasyon vs. Bayrak EBT Taban | Turk Telekomunikasyon vs. Birikim Varlik Yonetim | Turk Telekomunikasyon vs. Inveo Yatirim Holding |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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