Correlation Between Frigo Pak and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both Frigo Pak and Smart Gunes 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 Frigo Pak and Smart Gunes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Frigo Pak Gida Maddeleri and Smart Gunes Enerjisi, you can compare the effects of market volatilities on Frigo Pak and Smart Gunes 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 Frigo Pak with a short position of Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Frigo Pak and Smart Gunes.
Diversification Opportunities for Frigo Pak and Smart Gunes
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Frigo and Smart is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Frigo Pak Gida Maddeleri and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi and Frigo Pak 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 Frigo Pak Gida Maddeleri are associated (or correlated) with Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Frigo Pak i.e., Frigo Pak and Smart Gunes go up and down completely randomly.
Pair Corralation between Frigo Pak and Smart Gunes
Assuming the 90 days trading horizon Frigo Pak Gida Maddeleri is expected to under-perform the Smart Gunes. But the stock apears to be less risky and, when comparing its historical volatility, Frigo Pak Gida Maddeleri is 1.39 times less risky than Smart Gunes. The stock trades about -0.06 of its potential returns per unit of risk. The Smart Gunes Enerjisi is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,006 in Smart Gunes Enerjisi on September 12, 2024 and sell it today you would earn a total of 74.00 from holding Smart Gunes Enerjisi or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Frigo Pak Gida Maddeleri vs. Smart Gunes Enerjisi
Performance |
| Timeline |
| Frigo Pak Gida |
| Smart Gunes Enerjisi |
Frigo Pak and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Frigo Pak and Smart Gunes
The main advantage of trading using opposite Frigo Pak and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Frigo Pak position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' long position.| Frigo Pak vs. Gentas Genel Metal | Frigo Pak vs. Akcansa Cimento Sanayi | Frigo Pak vs. Sekerbank TAS | Frigo Pak vs. E Data Teknoloji Pazarlama |
| Smart Gunes vs. Gentas Genel Metal | Smart Gunes vs. Akcansa Cimento Sanayi | Smart Gunes vs. Galatasaray Sportif Sinai | Smart Gunes vs. Cuhadaroglu 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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