Correlation Between Euro Kapital and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Euro Kapital and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Euro Kapital and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Kapital and SASA Polyester.
Diversification Opportunities for Euro Kapital and SASA Polyester
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Euro and SASA is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Euro Kapital Yatirim and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Euro Kapital i.e., Euro Kapital and SASA Polyester go up and down completely randomly.
Pair Corralation between Euro Kapital and SASA Polyester
If you would invest 386.00 in SASA Polyester Sanayi on September 2, 2024 and sell it today you would earn a total of 19.00 from holding SASA Polyester Sanayi or generate 4.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Euro Kapital Yatirim vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Euro Kapital Yatirim |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| SASA Polyester Sanayi |
Euro Kapital and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Euro Kapital and SASA Polyester
The main advantage of trading using opposite Euro Kapital and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euro Kapital position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester's long position.| Euro Kapital vs. Creditwest Faktoring AS | Euro Kapital vs. Akbank TAS | Euro Kapital vs. Politeknik Metal Sanayi | Euro Kapital vs. MEGA METAL |
| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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