Correlation Between Hektas Ticaret and ODAS Elektrik
Can any of the company-specific risk be diversified away by investing in both Hektas Ticaret and ODAS Elektrik 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 ODAS Elektrik 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 ODAS Elektrik Uretim, you can compare the effects of market volatilities on Hektas Ticaret and ODAS Elektrik 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 ODAS Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hektas Ticaret and ODAS Elektrik.
Diversification Opportunities for Hektas Ticaret and ODAS Elektrik
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hektas and ODAS is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Hektas Ticaret TAS and ODAS Elektrik Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ODAS Elektrik Uretim 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 ODAS Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ODAS Elektrik Uretim has no effect on the direction of Hektas Ticaret i.e., Hektas Ticaret and ODAS Elektrik go up and down completely randomly.
Pair Corralation between Hektas Ticaret and ODAS Elektrik
Assuming the 90 days trading horizon Hektas Ticaret TAS is expected to generate 1.21 times more return on investment than ODAS Elektrik. However, Hektas Ticaret is 1.21 times more volatile than ODAS Elektrik Uretim. It trades about 0.35 of its potential returns per unit of risk. ODAS Elektrik Uretim is currently generating about 0.13 per unit of risk. If you would invest 341.00 in Hektas Ticaret TAS on September 15, 2024 and sell it today you would earn a total of 78.00 from holding Hektas Ticaret TAS or generate 22.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hektas Ticaret TAS vs. ODAS Elektrik Uretim
Performance |
| Timeline |
| Hektas Ticaret TAS |
| ODAS Elektrik Uretim |
Hektas Ticaret and ODAS Elektrik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hektas Ticaret and ODAS Elektrik
The main advantage of trading using opposite Hektas Ticaret and ODAS Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hektas Ticaret position performs unexpectedly, ODAS Elektrik 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 ODAS Elektrik will offset losses from the drop in ODAS Elektrik's long position.| Hektas Ticaret vs. SASA Polyester Sanayi | Hektas Ticaret vs. Eregli Demir ve | Hektas Ticaret vs. Turkiye Sise ve | Hektas Ticaret vs. Ford Otomotiv Sanayi |
| ODAS Elektrik vs. Aksa Enerji Uretim | ODAS Elektrik vs. Hektas Ticaret TAS | ODAS Elektrik vs. Turkiye Sise ve | ODAS Elektrik vs. SASA Polyester 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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