Correlation Between Halk Gayrimenkul and Alkim Kagit
Can any of the company-specific risk be diversified away by investing in both Halk Gayrimenkul and Alkim Kagit 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 Halk Gayrimenkul and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Halk Gayrimenkul Yatirim and Alkim Kagit Sanayi, you can compare the effects of market volatilities on Halk Gayrimenkul and Alkim Kagit 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 Halk Gayrimenkul with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Halk Gayrimenkul and Alkim Kagit.
Diversification Opportunities for Halk Gayrimenkul and Alkim Kagit
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Halk and Alkim is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Halk Gayrimenkul Yatirim and Alkim Kagit Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Kagit Sanayi and Halk Gayrimenkul 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 Halk Gayrimenkul Yatirim are associated (or correlated) with Alkim Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Kagit Sanayi has no effect on the direction of Halk Gayrimenkul i.e., Halk Gayrimenkul and Alkim Kagit go up and down completely randomly.
Pair Corralation between Halk Gayrimenkul and Alkim Kagit
Assuming the 90 days trading horizon Halk Gayrimenkul Yatirim is expected to generate 1.15 times more return on investment than Alkim Kagit. However, Halk Gayrimenkul is 1.15 times more volatile than Alkim Kagit Sanayi. It trades about 0.26 of its potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about 0.1 per unit of risk. If you would invest 231.00 in Halk Gayrimenkul Yatirim on September 2, 2024 and sell it today you would earn a total of 34.00 from holding Halk Gayrimenkul Yatirim or generate 14.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Halk Gayrimenkul Yatirim vs. Alkim Kagit Sanayi
Performance |
| Timeline |
| Halk Gayrimenkul Yatirim |
| Alkim Kagit Sanayi |
Halk Gayrimenkul and Alkim Kagit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Halk Gayrimenkul and Alkim Kagit
The main advantage of trading using opposite Halk Gayrimenkul and Alkim Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Halk Gayrimenkul position performs unexpectedly, Alkim Kagit 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 Alkim Kagit will offset losses from the drop in Alkim Kagit's long position.| Halk Gayrimenkul vs. Sekerbank TAS | Halk Gayrimenkul vs. Gentas Genel Metal | Halk Gayrimenkul vs. Koza Anadolu Metal | Halk Gayrimenkul vs. MEGA METAL |
| Alkim Kagit vs. Sekerbank TAS | Alkim Kagit vs. Gentas Genel Metal | Alkim Kagit vs. Politeknik Metal Sanayi | Alkim Kagit 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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