Correlation Between Eregli Demir and Vestel Elektronik
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Vestel Elektronik 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 Vestel Elektronik 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 Vestel Elektronik Sanayi, you can compare the effects of market volatilities on Eregli Demir and Vestel Elektronik 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 Vestel Elektronik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Vestel Elektronik.
Diversification Opportunities for Eregli Demir and Vestel Elektronik
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eregli and Vestel is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Vestel Elektronik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestel Elektronik 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 Vestel Elektronik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestel Elektronik Sanayi has no effect on the direction of Eregli Demir i.e., Eregli Demir and Vestel Elektronik go up and down completely randomly.
Pair Corralation between Eregli Demir and Vestel Elektronik
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.73 times more return on investment than Vestel Elektronik. However, Eregli Demir ve is 1.36 times less risky than Vestel Elektronik. It trades about 0.04 of its potential returns per unit of risk. Vestel Elektronik Sanayi is currently generating about -0.03 per unit of risk. If you would invest 4,834 in Eregli Demir ve on August 29, 2024 and sell it today you would earn a total of 176.00 from holding Eregli Demir ve or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eregli Demir ve vs. Vestel Elektronik Sanayi
Performance |
| Timeline |
| Eregli Demir ve |
| Vestel Elektronik Sanayi |
Eregli Demir and Vestel Elektronik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Vestel Elektronik
The main advantage of trading using opposite Eregli Demir and Vestel Elektronik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Vestel Elektronik 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 Vestel Elektronik will offset losses from the drop in Vestel Elektronik'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 |
| Vestel Elektronik vs. Arcelik AS | Vestel Elektronik vs. Vestel Beyaz Esya | Vestel Elektronik vs. Eregli Demir ve | Vestel Elektronik vs. Turkiye Sise ve |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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