Correlation Between Kartonsan Karton and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Kartonsan Karton and Ege Endustri 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 Kartonsan Karton and Ege Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kartonsan Karton Sanayi and Ege Endustri ve, you can compare the effects of market volatilities on Kartonsan Karton and Ege Endustri 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 Kartonsan Karton with a short position of Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kartonsan Karton and Ege Endustri.
Diversification Opportunities for Kartonsan Karton and Ege Endustri
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kartonsan and Ege is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kartonsan Karton Sanayi and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve and Kartonsan Karton 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 Kartonsan Karton Sanayi are associated (or correlated) with Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Kartonsan Karton i.e., Kartonsan Karton and Ege Endustri go up and down completely randomly.
Pair Corralation between Kartonsan Karton and Ege Endustri
Assuming the 90 days trading horizon Kartonsan Karton is expected to generate 2.13 times less return on investment than Ege Endustri. But when comparing it to its historical volatility, Kartonsan Karton Sanayi is 1.23 times less risky than Ege Endustri. It trades about 0.06 of its potential returns per unit of risk. Ege Endustri ve is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,009,750 in Ege Endustri ve on August 25, 2024 and sell it today you would earn a total of 66,250 from holding Ege Endustri ve or generate 6.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kartonsan Karton Sanayi vs. Ege Endustri ve
Performance |
| Timeline |
| Kartonsan Karton Sanayi |
| Ege Endustri ve |
Kartonsan Karton and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kartonsan Karton and Ege Endustri
The main advantage of trading using opposite Kartonsan Karton and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kartonsan Karton position performs unexpectedly, Ege Endustri 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 Endustri will offset losses from the drop in Ege Endustri's long position.| Kartonsan Karton vs. Ege Endustri ve | Kartonsan Karton vs. Otokar Otomotiv ve | Kartonsan Karton vs. BIM Birlesik Magazalar | Kartonsan Karton vs. Alkim Alkali Kimya |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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