Correlation Between Turkiye Is and Dagi Yatirim
Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Dagi Yatirim 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 Turkiye Is and Dagi Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and Dagi Yatirim Holding, you can compare the effects of market volatilities on Turkiye Is and Dagi Yatirim 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 Turkiye Is with a short position of Dagi Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Dagi Yatirim.
Diversification Opportunities for Turkiye Is and Dagi Yatirim
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Turkiye and Dagi is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Dagi Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Yatirim Holding and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with Dagi Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Yatirim Holding has no effect on the direction of Turkiye Is i.e., Turkiye Is and Dagi Yatirim go up and down completely randomly.
Pair Corralation between Turkiye Is and Dagi Yatirim
Assuming the 90 days trading horizon Turkiye Is is expected to generate 2.51 times less return on investment than Dagi Yatirim. In addition to that, Turkiye Is is 1.2 times more volatile than Dagi Yatirim Holding. It trades about 0.01 of its total potential returns per unit of risk. Dagi Yatirim Holding is currently generating about 0.04 per unit of volatility. If you would invest 1,349 in Dagi Yatirim Holding on August 26, 2024 and sell it today you would earn a total of 339.00 from holding Dagi Yatirim Holding or generate 25.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.37% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Dagi Yatirim Holding
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Dagi Yatirim Holding |
Turkiye Is and Dagi Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Dagi Yatirim
The main advantage of trading using opposite Turkiye Is and Dagi Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, Dagi Yatirim 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 Yatirim will offset losses from the drop in Dagi Yatirim's long position.| Turkiye Is vs. Sekerbank TAS | Turkiye Is vs. MEGA METAL | Turkiye Is vs. Creditwest Faktoring AS | Turkiye Is vs. CEO Event Medya |
| Dagi Yatirim vs. Cuhadaroglu Metal Sanayi | Dagi Yatirim vs. MEGA METAL | Dagi Yatirim vs. Borlease Otomotiv AS | Dagi Yatirim vs. Gentas Genel Metal |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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