Correlation Between Turkiye Is and Izmir Demir
Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Izmir Demir 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 Izmir Demir 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 Izmir Demir Celik, you can compare the effects of market volatilities on Turkiye Is and Izmir Demir 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 Izmir Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Izmir Demir.
Diversification Opportunities for Turkiye Is and Izmir Demir
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Izmir is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Izmir Demir Celik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izmir Demir Celik 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 Izmir Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izmir Demir Celik has no effect on the direction of Turkiye Is i.e., Turkiye Is and Izmir Demir go up and down completely randomly.
Pair Corralation between Turkiye Is and Izmir Demir
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to under-perform the Izmir Demir. In addition to that, Turkiye Is is 1.68 times more volatile than Izmir Demir Celik. It trades about -0.05 of its total potential returns per unit of risk. Izmir Demir Celik is currently generating about -0.05 per unit of volatility. If you would invest 566.00 in Izmir Demir Celik on September 2, 2024 and sell it today you would lose (37.00) from holding Izmir Demir Celik or give up 6.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Izmir Demir Celik
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Izmir Demir Celik |
Turkiye Is and Izmir Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Izmir Demir
The main advantage of trading using opposite Turkiye Is and Izmir Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, Izmir Demir 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 Izmir Demir will offset losses from the drop in Izmir Demir's long position.| Turkiye Is vs. Turkiye Halk Bankasi | Turkiye Is vs. Turkiye Vakiflar Bankasi | Turkiye Is vs. Turkiye Garanti Bankasi | Turkiye Is vs. Yapi ve Kredi |
| Izmir Demir vs. Cuhadaroglu Metal Sanayi | Izmir Demir vs. MEGA METAL | Izmir Demir vs. Akbank TAS | Izmir Demir vs. Mackolik Internet Hizmetleri |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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