Correlation Between Escort Teknoloji and Tofas Turk
Can any of the company-specific risk be diversified away by investing in both Escort Teknoloji and Tofas Turk 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 Escort Teknoloji and Tofas Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Escort Teknoloji Yatirim and Tofas Turk Otomobil, you can compare the effects of market volatilities on Escort Teknoloji and Tofas Turk 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 Escort Teknoloji with a short position of Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Escort Teknoloji and Tofas Turk.
Diversification Opportunities for Escort Teknoloji and Tofas Turk
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Escort and Tofas is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Escort Teknoloji Yatirim and Tofas Turk Otomobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tofas Turk Otomobil and Escort Teknoloji 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 Escort Teknoloji Yatirim are associated (or correlated) with Tofas Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tofas Turk Otomobil has no effect on the direction of Escort Teknoloji i.e., Escort Teknoloji and Tofas Turk go up and down completely randomly.
Pair Corralation between Escort Teknoloji and Tofas Turk
Assuming the 90 days trading horizon Escort Teknoloji Yatirim is expected to generate 1.39 times more return on investment than Tofas Turk. However, Escort Teknoloji is 1.39 times more volatile than Tofas Turk Otomobil. It trades about 0.04 of its potential returns per unit of risk. Tofas Turk Otomobil is currently generating about 0.04 per unit of risk. If you would invest 3,558 in Escort Teknoloji Yatirim on September 13, 2024 and sell it today you would earn a total of 2,032 from holding Escort Teknoloji Yatirim or generate 57.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Escort Teknoloji Yatirim vs. Tofas Turk Otomobil
Performance |
| Timeline |
| Escort Teknoloji Yatirim |
| Tofas Turk Otomobil |
Escort Teknoloji and Tofas Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Escort Teknoloji and Tofas Turk
The main advantage of trading using opposite Escort Teknoloji and Tofas Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Escort Teknoloji position performs unexpectedly, Tofas Turk 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 Tofas Turk will offset losses from the drop in Tofas Turk's long position.| Escort Teknoloji vs. Tofas Turk Otomobil | Escort Teknoloji vs. Tekfen Holding AS | Escort Teknoloji vs. Aksa Akrilik Kimya | Escort Teknoloji vs. Vestel Beyaz Esya |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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