Correlation Between Is Yatirim and Ege Gubre
Can any of the company-specific risk be diversified away by investing in both Is Yatirim and Ege Gubre 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 Is Yatirim and Ege Gubre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Is Yatirim Ortakligi and Ege Gubre Sanayi, you can compare the effects of market volatilities on Is Yatirim and Ege Gubre 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 Is Yatirim with a short position of Ege Gubre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Is Yatirim and Ege Gubre.
Diversification Opportunities for Is Yatirim and Ege Gubre
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ISYAT and Ege is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Is Yatirim Ortakligi and Ege Gubre Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Gubre Sanayi and Is Yatirim 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 Is Yatirim Ortakligi are associated (or correlated) with Ege Gubre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Gubre Sanayi has no effect on the direction of Is Yatirim i.e., Is Yatirim and Ege Gubre go up and down completely randomly.
Pair Corralation between Is Yatirim and Ege Gubre
Assuming the 90 days trading horizon Is Yatirim Ortakligi is expected to under-perform the Ege Gubre. But the stock apears to be less risky and, when comparing its historical volatility, Is Yatirim Ortakligi is 1.4 times less risky than Ege Gubre. The stock trades about -0.03 of its potential returns per unit of risk. The Ege Gubre Sanayi is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 7,315 in Ege Gubre Sanayi on November 28, 2024 and sell it today you would lose (1,015) from holding Ege Gubre Sanayi or give up 13.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Is Yatirim Ortakligi vs. Ege Gubre Sanayi
Performance |
| Timeline |
| Is Yatirim Ortakligi |
| Ege Gubre Sanayi |
Is Yatirim and Ege Gubre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Is Yatirim and Ege Gubre
The main advantage of trading using opposite Is Yatirim and Ege Gubre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Is Yatirim position performs unexpectedly, Ege Gubre 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 Ege Gubre will offset losses from the drop in Ege Gubre's long position.| Is Yatirim vs. E Data Teknoloji Pazarlama | Is Yatirim vs. KOC METALURJI | Is Yatirim vs. Gentas Genel Metal | Is Yatirim vs. Koza Anadolu Metal |
| Ege Gubre vs. Sekerbank TAS | Ege Gubre vs. E Data Teknoloji Pazarlama | Ege Gubre vs. Cuhadaroglu Metal Sanayi | Ege Gubre vs. Politeknik Metal Sanayi |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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