Correlation Between Katmerciler Arac and Ditas Dogan
Can any of the company-specific risk be diversified away by investing in both Katmerciler Arac and Ditas Dogan 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 Katmerciler Arac and Ditas Dogan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katmerciler Arac Ustu and Ditas Dogan Yedek, you can compare the effects of market volatilities on Katmerciler Arac and Ditas Dogan 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 Katmerciler Arac with a short position of Ditas Dogan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katmerciler Arac and Ditas Dogan.
Diversification Opportunities for Katmerciler Arac and Ditas Dogan
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Katmerciler and Ditas is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Katmerciler Arac Ustu and Ditas Dogan Yedek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ditas Dogan Yedek and Katmerciler Arac 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 Katmerciler Arac Ustu are associated (or correlated) with Ditas Dogan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ditas Dogan Yedek has no effect on the direction of Katmerciler Arac i.e., Katmerciler Arac and Ditas Dogan go up and down completely randomly.
Pair Corralation between Katmerciler Arac and Ditas Dogan
Assuming the 90 days trading horizon Katmerciler Arac Ustu is expected to generate 1.36 times more return on investment than Ditas Dogan. However, Katmerciler Arac is 1.36 times more volatile than Ditas Dogan Yedek. It trades about 0.0 of its potential returns per unit of risk. Ditas Dogan Yedek is currently generating about -0.36 per unit of risk. If you would invest 207.00 in Katmerciler Arac Ustu on November 28, 2024 and sell it today you would lose (1.00) from holding Katmerciler Arac Ustu or give up 0.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Katmerciler Arac Ustu vs. Ditas Dogan Yedek
Performance |
| Timeline |
| Katmerciler Arac Ustu |
| Ditas Dogan Yedek |
Katmerciler Arac and Ditas Dogan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katmerciler Arac and Ditas Dogan
The main advantage of trading using opposite Katmerciler Arac and Ditas Dogan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katmerciler Arac position performs unexpectedly, Ditas Dogan 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 Ditas Dogan will offset losses from the drop in Ditas Dogan's long position.| Katmerciler Arac vs. E Data Teknoloji Pazarlama | Katmerciler Arac vs. Bms Birlesik Metal | Katmerciler Arac vs. Politeknik Metal Sanayi | Katmerciler Arac vs. Koza Anadolu Metal |
| Ditas Dogan vs. Akbank TAS | Ditas Dogan vs. Turkiye Garanti Bankasi | Ditas Dogan vs. Yapi ve Kredi | Ditas Dogan vs. Turkiye Petrol Rafinerileri |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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