Correlation Between Ipek Dogal and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Ipek Dogal and Dow Jones 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 Ipek Dogal and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ipek Dogal Enerji and Dow Jones Industrial, you can compare the effects of market volatilities on Ipek Dogal and Dow Jones 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 Ipek Dogal with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipek Dogal and Dow Jones.
Diversification Opportunities for Ipek Dogal and Dow Jones
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ipek and Dow is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Ipek Dogal Enerji and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Ipek Dogal 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 Ipek Dogal Enerji are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Ipek Dogal i.e., Ipek Dogal and Dow Jones go up and down completely randomly.
Pair Corralation between Ipek Dogal and Dow Jones
Assuming the 90 days trading horizon Ipek Dogal Enerji is expected to generate 3.2 times more return on investment than Dow Jones. However, Ipek Dogal is 3.2 times more volatile than Dow Jones Industrial. It trades about 0.64 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.27 per unit of risk. If you would invest 3,510 in Ipek Dogal Enerji on August 29, 2024 and sell it today you would earn a total of 1,745 from holding Ipek Dogal Enerji or generate 49.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Ipek Dogal Enerji vs. Dow Jones Industrial
Performance |
| Timeline |
Ipek Dogal and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Ipek Dogal Enerji
Pair trading matchups for Ipek Dogal
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Ipek Dogal and Dow Jones
The main advantage of trading using opposite Ipek Dogal and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ipek Dogal position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Ipek Dogal vs. Koza Anadolu Metal | Ipek Dogal vs. Koza Altin Isletmeleri | Ipek Dogal vs. Vestel Elektronik Sanayi | Ipek Dogal vs. Petkim Petrokimya Holding |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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