Correlation Between Hektas Ticaret and Dogus Otomotiv
Can any of the company-specific risk be diversified away by investing in both Hektas Ticaret and Dogus Otomotiv 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 Hektas Ticaret and Dogus Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hektas Ticaret TAS and Dogus Otomotiv Servis, you can compare the effects of market volatilities on Hektas Ticaret and Dogus Otomotiv 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 Hektas Ticaret with a short position of Dogus Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hektas Ticaret and Dogus Otomotiv.
Diversification Opportunities for Hektas Ticaret and Dogus Otomotiv
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hektas and Dogus is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hektas Ticaret TAS and Dogus Otomotiv Servis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dogus Otomotiv Servis and Hektas Ticaret 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 Hektas Ticaret TAS are associated (or correlated) with Dogus Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dogus Otomotiv Servis has no effect on the direction of Hektas Ticaret i.e., Hektas Ticaret and Dogus Otomotiv go up and down completely randomly.
Pair Corralation between Hektas Ticaret and Dogus Otomotiv
Assuming the 90 days trading horizon Hektas Ticaret TAS is expected to generate 0.96 times more return on investment than Dogus Otomotiv. However, Hektas Ticaret TAS is 1.04 times less risky than Dogus Otomotiv. It trades about -0.1 of its potential returns per unit of risk. Dogus Otomotiv Servis is currently generating about -0.11 per unit of risk. If you would invest 404.00 in Hektas Ticaret TAS on September 28, 2024 and sell it today you would lose (19.00) from holding Hektas Ticaret TAS or give up 4.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hektas Ticaret TAS vs. Dogus Otomotiv Servis
Performance |
| Timeline |
| Hektas Ticaret TAS |
| Dogus Otomotiv Servis |
Hektas Ticaret and Dogus Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hektas Ticaret and Dogus Otomotiv
The main advantage of trading using opposite Hektas Ticaret and Dogus Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hektas Ticaret position performs unexpectedly, Dogus Otomotiv 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 Otomotiv will offset losses from the drop in Dogus Otomotiv's long position.| Hektas Ticaret vs. Ege Endustri ve | Hektas Ticaret vs. Bosch Fren Sistemleri | Hektas Ticaret vs. Dogus Otomotiv Servis | Hektas Ticaret vs. Nuh Cimento 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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