Correlation Between Ihlas Gazetecilik and Dagi Giyim
Can any of the company-specific risk be diversified away by investing in both Ihlas Gazetecilik and Dagi Giyim 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 Ihlas Gazetecilik and Dagi Giyim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihlas Gazetecilik AS and Dagi Giyim Sanayi, you can compare the effects of market volatilities on Ihlas Gazetecilik and Dagi Giyim 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 Ihlas Gazetecilik with a short position of Dagi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Gazetecilik and Dagi Giyim.
Diversification Opportunities for Ihlas Gazetecilik and Dagi Giyim
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ihlas and Dagi is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Gazetecilik AS and Dagi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Giyim Sanayi and Ihlas Gazetecilik 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 Ihlas Gazetecilik AS are associated (or correlated) with Dagi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Giyim Sanayi has no effect on the direction of Ihlas Gazetecilik i.e., Ihlas Gazetecilik and Dagi Giyim go up and down completely randomly.
Pair Corralation between Ihlas Gazetecilik and Dagi Giyim
Assuming the 90 days trading horizon Ihlas Gazetecilik is expected to generate 2.25 times less return on investment than Dagi Giyim. In addition to that, Ihlas Gazetecilik is 1.52 times more volatile than Dagi Giyim Sanayi. It trades about 0.09 of its total potential returns per unit of risk. Dagi Giyim Sanayi is currently generating about 0.31 per unit of volatility. If you would invest 815.00 in Dagi Giyim Sanayi on September 13, 2024 and sell it today you would earn a total of 683.00 from holding Dagi Giyim Sanayi or generate 83.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihlas Gazetecilik AS vs. Dagi Giyim Sanayi
Performance |
| Timeline |
| Ihlas Gazetecilik |
| Dagi Giyim Sanayi |
Ihlas Gazetecilik and Dagi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihlas Gazetecilik and Dagi Giyim
The main advantage of trading using opposite Ihlas Gazetecilik and Dagi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Gazetecilik position performs unexpectedly, Dagi Giyim 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 Dagi Giyim will offset losses from the drop in Dagi Giyim's long position.| Ihlas Gazetecilik vs. Cuhadaroglu Metal Sanayi | Ihlas Gazetecilik vs. Creditwest Faktoring AS | Ihlas Gazetecilik vs. Gentas Genel Metal | Ihlas Gazetecilik vs. MEGA METAL |
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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