Correlation Between Ihlas Gazetecilik and Vakif Finansal
Can any of the company-specific risk be diversified away by investing in both Ihlas Gazetecilik and Vakif Finansal 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 Vakif Finansal 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 Vakif Finansal Kiralama, you can compare the effects of market volatilities on Ihlas Gazetecilik and Vakif Finansal 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 Vakif Finansal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Gazetecilik and Vakif Finansal.
Diversification Opportunities for Ihlas Gazetecilik and Vakif Finansal
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ihlas and Vakif is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Gazetecilik AS and Vakif Finansal Kiralama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vakif Finansal Kiralama 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 Vakif Finansal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vakif Finansal Kiralama has no effect on the direction of Ihlas Gazetecilik i.e., Ihlas Gazetecilik and Vakif Finansal go up and down completely randomly.
Pair Corralation between Ihlas Gazetecilik and Vakif Finansal
Assuming the 90 days trading horizon Ihlas Gazetecilik AS is expected to generate 0.99 times more return on investment than Vakif Finansal. However, Ihlas Gazetecilik AS is 1.01 times less risky than Vakif Finansal. It trades about 0.07 of its potential returns per unit of risk. Vakif Finansal Kiralama is currently generating about 0.06 per unit of risk. If you would invest 102.00 in Ihlas Gazetecilik AS on September 4, 2024 and sell it today you would earn a total of 101.00 from holding Ihlas Gazetecilik AS or generate 99.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihlas Gazetecilik AS vs. Vakif Finansal Kiralama
Performance |
| Timeline |
| Ihlas Gazetecilik |
| Vakif Finansal Kiralama |
Ihlas Gazetecilik and Vakif Finansal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihlas Gazetecilik and Vakif Finansal
The main advantage of trading using opposite Ihlas Gazetecilik and Vakif Finansal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Gazetecilik position performs unexpectedly, Vakif Finansal 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 Vakif Finansal will offset losses from the drop in Vakif Finansal's long position.| Ihlas Gazetecilik vs. Borlease Otomotiv AS | Ihlas Gazetecilik vs. MEGA METAL | Ihlas Gazetecilik vs. Cuhadaroglu Metal Sanayi | Ihlas Gazetecilik vs. Bms Birlesik 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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