Correlation Between Ihlas Yayin and Cuhadaroglu Metal
Can any of the company-specific risk be diversified away by investing in both Ihlas Yayin and Cuhadaroglu Metal 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 Yayin and Cuhadaroglu Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihlas Yayin Holding and Cuhadaroglu Metal Sanayi, you can compare the effects of market volatilities on Ihlas Yayin and Cuhadaroglu Metal 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 Yayin with a short position of Cuhadaroglu Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Yayin and Cuhadaroglu Metal.
Diversification Opportunities for Ihlas Yayin and Cuhadaroglu Metal
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ihlas and Cuhadaroglu is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Yayin Holding and Cuhadaroglu Metal Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cuhadaroglu Metal Sanayi and Ihlas Yayin 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 Yayin Holding are associated (or correlated) with Cuhadaroglu Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cuhadaroglu Metal Sanayi has no effect on the direction of Ihlas Yayin i.e., Ihlas Yayin and Cuhadaroglu Metal go up and down completely randomly.
Pair Corralation between Ihlas Yayin and Cuhadaroglu Metal
Assuming the 90 days trading horizon Ihlas Yayin Holding is expected to generate 1.27 times more return on investment than Cuhadaroglu Metal. However, Ihlas Yayin is 1.27 times more volatile than Cuhadaroglu Metal Sanayi. It trades about 0.08 of its potential returns per unit of risk. Cuhadaroglu Metal Sanayi is currently generating about 0.03 per unit of risk. If you would invest 110.00 in Ihlas Yayin Holding on September 19, 2024 and sell it today you would earn a total of 265.00 from holding Ihlas Yayin Holding or generate 240.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ihlas Yayin Holding vs. Cuhadaroglu Metal Sanayi
Performance |
| Timeline |
| Ihlas Yayin Holding |
| Cuhadaroglu Metal Sanayi |
Ihlas Yayin and Cuhadaroglu Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ihlas Yayin and Cuhadaroglu Metal
The main advantage of trading using opposite Ihlas Yayin and Cuhadaroglu Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Yayin position performs unexpectedly, Cuhadaroglu Metal 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 Cuhadaroglu Metal will offset losses from the drop in Cuhadaroglu Metal's long position.| Ihlas Yayin vs. Datagate Bilgisayar Malzemeleri | Ihlas Yayin vs. Galatasaray Sportif Sinai | Ihlas Yayin vs. Politeknik Metal Sanayi | Ihlas Yayin vs. Akbank TAS |
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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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