Correlation Between Kent Gida and Hitit Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Kent Gida and Hitit Bilgisayar 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 Hitit Bilgisayar 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 Hitit Bilgisayar Hizmetleri, you can compare the effects of market volatilities on Kent Gida and Hitit Bilgisayar 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 Hitit Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Hitit Bilgisayar.
Diversification Opportunities for Kent Gida and Hitit Bilgisayar
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Kent and Hitit is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and Hitit Bilgisayar Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitit Bilgisayar Hiz 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 Hitit Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitit Bilgisayar Hiz has no effect on the direction of Kent Gida i.e., Kent Gida and Hitit Bilgisayar go up and down completely randomly.
Pair Corralation between Kent Gida and Hitit Bilgisayar
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to generate 1.06 times more return on investment than Hitit Bilgisayar. However, Kent Gida is 1.06 times more volatile than Hitit Bilgisayar Hizmetleri. It trades about -0.02 of its potential returns per unit of risk. Hitit Bilgisayar Hizmetleri is currently generating about -0.07 per unit of risk. If you would invest 92,150 in Kent Gida Maddeleri on August 28, 2024 and sell it today you would lose (4,250) from holding Kent Gida Maddeleri or give up 4.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kent Gida Maddeleri vs. Hitit Bilgisayar Hizmetleri
Performance |
| Timeline |
| Kent Gida Maddeleri |
| Hitit Bilgisayar Hiz |
Kent Gida and Hitit Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kent Gida and Hitit Bilgisayar
The main advantage of trading using opposite Kent Gida and Hitit Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida position performs unexpectedly, Hitit Bilgisayar 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 Hitit Bilgisayar will offset losses from the drop in Hitit Bilgisayar's long position.| Kent Gida vs. Gentas Genel Metal | Kent Gida vs. Politeknik Metal Sanayi | Kent Gida vs. Akbank TAS | Kent Gida vs. Cuhadaroglu 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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