Correlation Between Ipek Dogal and Tekfen Holding
Can any of the company-specific risk be diversified away by investing in both Ipek Dogal and Tekfen Holding 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 Tekfen Holding 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 Tekfen Holding AS, you can compare the effects of market volatilities on Ipek Dogal and Tekfen Holding 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 Tekfen Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipek Dogal and Tekfen Holding.
Diversification Opportunities for Ipek Dogal and Tekfen Holding
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ipek and Tekfen is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Ipek Dogal Enerji and Tekfen Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekfen Holding AS 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 Tekfen Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekfen Holding AS has no effect on the direction of Ipek Dogal i.e., Ipek Dogal and Tekfen Holding go up and down completely randomly.
Pair Corralation between Ipek Dogal and Tekfen Holding
Assuming the 90 days trading horizon Ipek Dogal Enerji is expected to generate 1.49 times more return on investment than Tekfen Holding. However, Ipek Dogal is 1.49 times more volatile than Tekfen Holding AS. It trades about 0.56 of its potential returns per unit of risk. Tekfen Holding AS is currently generating about 0.26 per unit of risk. If you would invest 3,474 in Ipek Dogal Enerji on August 25, 2024 and sell it today you would earn a total of 1,486 from holding Ipek Dogal Enerji or generate 42.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ipek Dogal Enerji vs. Tekfen Holding AS
Performance |
| Timeline |
| Ipek Dogal Enerji |
| Tekfen Holding AS |
Ipek Dogal and Tekfen Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ipek Dogal and Tekfen Holding
The main advantage of trading using opposite Ipek Dogal and Tekfen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ipek Dogal position performs unexpectedly, Tekfen Holding 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 Tekfen Holding will offset losses from the drop in Tekfen Holding's 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 |
| Tekfen Holding vs. QNB Finans Finansal | Tekfen Holding vs. Pamel Yenilenebilir Elektrik | Tekfen Holding vs. Brisa Bridgestone Sabanci | Tekfen Holding vs. Dogus Gayrimenkul Yatirim |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |