Correlation Between Esenboga Elektrik and Kimteks Poliuretan
Can any of the company-specific risk be diversified away by investing in both Esenboga Elektrik and Kimteks Poliuretan 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 Esenboga Elektrik and Kimteks Poliuretan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esenboga Elektrik Uretim and Kimteks Poliuretan Sanayi, you can compare the effects of market volatilities on Esenboga Elektrik and Kimteks Poliuretan 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 Esenboga Elektrik with a short position of Kimteks Poliuretan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esenboga Elektrik and Kimteks Poliuretan.
Diversification Opportunities for Esenboga Elektrik and Kimteks Poliuretan
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Esenboga and Kimteks is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Esenboga Elektrik Uretim and Kimteks Poliuretan Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimteks Poliuretan Sanayi and Esenboga Elektrik 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 Esenboga Elektrik Uretim are associated (or correlated) with Kimteks Poliuretan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimteks Poliuretan Sanayi has no effect on the direction of Esenboga Elektrik i.e., Esenboga Elektrik and Kimteks Poliuretan go up and down completely randomly.
Pair Corralation between Esenboga Elektrik and Kimteks Poliuretan
Assuming the 90 days trading horizon Esenboga Elektrik Uretim is expected to generate 1.8 times more return on investment than Kimteks Poliuretan. However, Esenboga Elektrik is 1.8 times more volatile than Kimteks Poliuretan Sanayi. It trades about 0.37 of its potential returns per unit of risk. Kimteks Poliuretan Sanayi is currently generating about -0.07 per unit of risk. If you would invest 2,222 in Esenboga Elektrik Uretim on October 20, 2024 and sell it today you would earn a total of 514.00 from holding Esenboga Elektrik Uretim or generate 23.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Esenboga Elektrik Uretim vs. Kimteks Poliuretan Sanayi
Performance |
| Timeline |
| Esenboga Elektrik Uretim |
| Kimteks Poliuretan Sanayi |
Esenboga Elektrik and Kimteks Poliuretan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esenboga Elektrik and Kimteks Poliuretan
The main advantage of trading using opposite Esenboga Elektrik and Kimteks Poliuretan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esenboga Elektrik position performs unexpectedly, Kimteks Poliuretan 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 Kimteks Poliuretan will offset losses from the drop in Kimteks Poliuretan's long position.| Esenboga Elektrik vs. Aksa Enerji Uretim | Esenboga Elektrik vs. Aydem Yenilenebilir Enerji | Esenboga Elektrik vs. Pamel Yenilenebilir Elektrik | Esenboga Elektrik vs. Galata Wind Enerji |
| Kimteks Poliuretan vs. Creditwest Faktoring AS | Kimteks Poliuretan vs. Mackolik Internet Hizmetleri | Kimteks Poliuretan vs. Cuhadaroglu Metal Sanayi | Kimteks Poliuretan vs. E Data Teknoloji Pazarlama |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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