Correlation Between Euro Kapital and Dogus Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Euro Kapital and Dogus Gayrimenkul 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 Euro Kapital and Dogus Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euro Kapital Yatirim and Dogus Gayrimenkul Yatirim, you can compare the effects of market volatilities on Euro Kapital and Dogus Gayrimenkul 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 Euro Kapital with a short position of Dogus Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Kapital and Dogus Gayrimenkul.
Diversification Opportunities for Euro Kapital and Dogus Gayrimenkul
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Euro and Dogus is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Euro Kapital Yatirim and Dogus Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Gayrimenkul Yatirim and Euro Kapital 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 Euro Kapital Yatirim are associated (or correlated) with Dogus Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Gayrimenkul Yatirim has no effect on the direction of Euro Kapital i.e., Euro Kapital and Dogus Gayrimenkul go up and down completely randomly.
Pair Corralation between Euro Kapital and Dogus Gayrimenkul
Assuming the 90 days trading horizon Euro Kapital Yatirim is expected to under-perform the Dogus Gayrimenkul. In addition to that, Euro Kapital is 1.29 times more volatile than Dogus Gayrimenkul Yatirim. It trades about -0.01 of its total potential returns per unit of risk. Dogus Gayrimenkul Yatirim is currently generating about 0.07 per unit of volatility. If you would invest 3,060 in Dogus Gayrimenkul Yatirim on November 28, 2024 and sell it today you would earn a total of 676.00 from holding Dogus Gayrimenkul Yatirim or generate 22.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Euro Kapital Yatirim vs. Dogus Gayrimenkul Yatirim
Performance |
| Timeline |
| Euro Kapital Yatirim |
| Dogus Gayrimenkul Yatirim |
Euro Kapital and Dogus Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euro Kapital and Dogus Gayrimenkul
The main advantage of trading using opposite Euro Kapital and Dogus Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euro Kapital position performs unexpectedly, Dogus Gayrimenkul 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 Dogus Gayrimenkul will offset losses from the drop in Dogus Gayrimenkul's long position.| Euro Kapital vs. Sodas Sodyum Sanayi | Euro Kapital vs. Silverline Endustri ve | Euro Kapital vs. Akbank TAS | Euro Kapital vs. Turkiye Kalkinma Bankasi |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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