Correlation Between Iskenderun Demir and Izmir Demir
Can any of the company-specific risk be diversified away by investing in both Iskenderun Demir 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 Iskenderun Demir and Izmir Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iskenderun Demir ve and Izmir Demir Celik, you can compare the effects of market volatilities on Iskenderun Demir 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 Iskenderun Demir with a short position of Izmir Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iskenderun Demir and Izmir Demir.
Diversification Opportunities for Iskenderun Demir and Izmir Demir
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Iskenderun and Izmir is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve 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 Iskenderun Demir 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 Iskenderun Demir ve 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 Iskenderun Demir i.e., Iskenderun Demir and Izmir Demir go up and down completely randomly.
Pair Corralation between Iskenderun Demir and Izmir Demir
Assuming the 90 days trading horizon Iskenderun Demir ve is expected to generate 0.9 times more return on investment than Izmir Demir. However, Iskenderun Demir ve is 1.11 times less risky than Izmir Demir. It trades about 0.21 of its potential returns per unit of risk. Izmir Demir Celik is currently generating about 0.08 per unit of risk. If you would invest 3,682 in Iskenderun Demir ve on September 12, 2024 and sell it today you would earn a total of 448.00 from holding Iskenderun Demir ve or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Iskenderun Demir ve vs. Izmir Demir Celik
Performance |
| Timeline |
| Iskenderun Demir |
| Izmir Demir Celik |
Iskenderun Demir and Izmir Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iskenderun Demir and Izmir Demir
The main advantage of trading using opposite Iskenderun Demir and Izmir Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iskenderun Demir 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.| Iskenderun Demir vs. Ayes Celik Hasir | Iskenderun Demir vs. Trend Gayrimenkul Yatirim | Iskenderun Demir vs. Ege Endustri ve | Iskenderun Demir vs. Alarko Carrier Sanayi |
| Izmir Demir vs. Galatasaray Sportif Sinai | Izmir Demir vs. Silverline Endustri ve | Izmir Demir vs. MEGA METAL | Izmir Demir vs. Bms Birlesik 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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