Correlation Between Kent Gida and Iskenderun Demir
Can any of the company-specific risk be diversified away by investing in both Kent Gida and Iskenderun Demir 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 Iskenderun Demir 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 Iskenderun Demir ve, you can compare the effects of market volatilities on Kent Gida and Iskenderun Demir 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 Iskenderun Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Iskenderun Demir.
Diversification Opportunities for Kent Gida and Iskenderun Demir
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kent and Iskenderun is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and Iskenderun Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iskenderun Demir 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 Iskenderun Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iskenderun Demir has no effect on the direction of Kent Gida i.e., Kent Gida and Iskenderun Demir go up and down completely randomly.
Pair Corralation between Kent Gida and Iskenderun Demir
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to under-perform the Iskenderun Demir. In addition to that, Kent Gida is 1.08 times more volatile than Iskenderun Demir ve. It trades about -0.45 of its total potential returns per unit of risk. Iskenderun Demir ve is currently generating about -0.26 per unit of volatility. If you would invest 4,078 in Iskenderun Demir ve on November 2, 2024 and sell it today you would lose (288.00) from holding Iskenderun Demir ve or give up 7.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kent Gida Maddeleri vs. Iskenderun Demir ve
Performance |
| Timeline |
| Kent Gida Maddeleri |
| Iskenderun Demir |
Kent Gida and Iskenderun Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kent Gida and Iskenderun Demir
The main advantage of trading using opposite Kent Gida and Iskenderun Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida position performs unexpectedly, Iskenderun Demir 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 Iskenderun Demir will offset losses from the drop in Iskenderun Demir's long position.| Kent Gida vs. Bms Birlesik Metal | Kent Gida vs. Gentas Genel Metal | Kent Gida vs. Turkiye Kalkinma Bankasi | Kent Gida vs. Koza Anadolu Metal |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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