Correlation Between Eregli Demir and Yapi Ve
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Yapi Ve 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 Yapi Ve 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 Yapi ve Kredi, you can compare the effects of market volatilities on Eregli Demir and Yapi Ve 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 Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Yapi Ve.
Diversification Opportunities for Eregli Demir and Yapi Ve
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Eregli and Yapi is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi 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 Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Eregli Demir i.e., Eregli Demir and Yapi Ve go up and down completely randomly.
Pair Corralation between Eregli Demir and Yapi Ve
Assuming the 90 days trading horizon Eregli Demir is expected to generate 3.92 times less return on investment than Yapi Ve. But when comparing it to its historical volatility, Eregli Demir ve is 1.6 times less risky than Yapi Ve. It trades about 0.14 of its potential returns per unit of risk. Yapi ve Kredi is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 2,502 in Yapi ve Kredi on August 31, 2024 and sell it today you would earn a total of 590.00 from holding Yapi ve Kredi or generate 23.58% 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. Yapi ve Kredi
Performance |
| Timeline |
| Eregli Demir ve |
| Yapi ve Kredi |
Eregli Demir and Yapi Ve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eregli Demir and Yapi Ve
The main advantage of trading using opposite Eregli Demir and Yapi Ve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Yapi Ve 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 Yapi Ve will offset losses from the drop in Yapi Ve'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 |
| Yapi Ve vs. Cuhadaroglu Metal Sanayi | Yapi Ve vs. MEGA METAL | Yapi Ve vs. Koza Anadolu Metal | Yapi Ve vs. Politeknik Metal 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 Stocks Directory module to find actively traded stocks across global markets.
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