Correlation Between Kent Gida and Ekiz Kimya
Can any of the company-specific risk be diversified away by investing in both Kent Gida and Ekiz Kimya 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 Kent Gida and Ekiz Kimya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kent Gida Maddeleri and Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Kent Gida and Ekiz Kimya 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 Kent Gida with a short position of Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Ekiz Kimya.
Diversification Opportunities for Kent Gida and Ekiz Kimya
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kent and Ekiz is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and Ekiz Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekiz Kimya Sanayi and Kent Gida 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 Kent Gida Maddeleri are associated (or correlated) with Ekiz Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekiz Kimya Sanayi has no effect on the direction of Kent Gida i.e., Kent Gida and Ekiz Kimya go up and down completely randomly.
Pair Corralation between Kent Gida and Ekiz Kimya
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to generate 1.29 times more return on investment than Ekiz Kimya. However, Kent Gida is 1.29 times more volatile than Ekiz Kimya Sanayi. It trades about 0.07 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.05 per unit of risk. If you would invest 75,500 in Kent Gida Maddeleri on September 5, 2024 and sell it today you would earn a total of 3,050 from holding Kent Gida Maddeleri or generate 4.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kent Gida Maddeleri vs. Ekiz Kimya Sanayi
Performance |
| Timeline |
| Kent Gida Maddeleri |
| Ekiz Kimya Sanayi |
Kent Gida and Ekiz Kimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kent Gida and Ekiz Kimya
The main advantage of trading using opposite Kent Gida and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida position performs unexpectedly, Ekiz Kimya 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 Ekiz Kimya will offset losses from the drop in Ekiz Kimya's long position.| Kent Gida vs. Bms Birlesik Metal | Kent Gida vs. Trabzonspor Sportif Yatirim | Kent Gida vs. MEGA METAL | Kent Gida vs. Cuhadaroglu Metal Sanayi |
| Ekiz Kimya vs. Politeknik Metal Sanayi | Ekiz Kimya vs. Creditwest Faktoring AS | Ekiz Kimya vs. Turkiye Kalkinma Bankasi | Ekiz Kimya vs. MEGA 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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