Correlation Between IZDEMIR Enerji and Penta Teknoloji
Can any of the company-specific risk be diversified away by investing in both IZDEMIR Enerji and Penta Teknoloji 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 IZDEMIR Enerji and Penta Teknoloji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IZDEMIR Enerji Elektrik and Penta Teknoloji Urunleri, you can compare the effects of market volatilities on IZDEMIR Enerji and Penta Teknoloji 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 IZDEMIR Enerji with a short position of Penta Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of IZDEMIR Enerji and Penta Teknoloji.
Diversification Opportunities for IZDEMIR Enerji and Penta Teknoloji
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between IZDEMIR and Penta is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding IZDEMIR Enerji Elektrik and Penta Teknoloji Urunleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penta Teknoloji Urunleri and IZDEMIR Enerji 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 IZDEMIR Enerji Elektrik are associated (or correlated) with Penta Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penta Teknoloji Urunleri has no effect on the direction of IZDEMIR Enerji i.e., IZDEMIR Enerji and Penta Teknoloji go up and down completely randomly.
Pair Corralation between IZDEMIR Enerji and Penta Teknoloji
Assuming the 90 days trading horizon IZDEMIR Enerji Elektrik is expected to generate 1.07 times more return on investment than Penta Teknoloji. However, IZDEMIR Enerji is 1.07 times more volatile than Penta Teknoloji Urunleri. It trades about 0.02 of its potential returns per unit of risk. Penta Teknoloji Urunleri is currently generating about -0.06 per unit of risk. If you would invest 492.00 in IZDEMIR Enerji Elektrik on September 2, 2024 and sell it today you would lose (4.00) from holding IZDEMIR Enerji Elektrik or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 65.59% |
| Values | Daily Returns |
IZDEMIR Enerji Elektrik vs. Penta Teknoloji Urunleri
Performance |
| Timeline |
| IZDEMIR Enerji Elektrik |
| Penta Teknoloji Urunleri |
IZDEMIR Enerji and Penta Teknoloji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IZDEMIR Enerji and Penta Teknoloji
The main advantage of trading using opposite IZDEMIR Enerji and Penta Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IZDEMIR Enerji position performs unexpectedly, Penta Teknoloji 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 Penta Teknoloji will offset losses from the drop in Penta Teknoloji's long position.| IZDEMIR Enerji vs. Cuhadaroglu Metal Sanayi | IZDEMIR Enerji vs. Borlease Otomotiv AS | IZDEMIR Enerji vs. Silverline Endustri ve | IZDEMIR Enerji vs. Galatasaray Sportif Sinai |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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