Correlation Between Kent Gida and Kuyas Yatirim
Can any of the company-specific risk be diversified away by investing in both Kent Gida and Kuyas Yatirim 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 Kuyas Yatirim 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 Kuyas Yatirim AS, you can compare the effects of market volatilities on Kent Gida and Kuyas Yatirim 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 Kuyas Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Kuyas Yatirim.
Diversification Opportunities for Kent Gida and Kuyas Yatirim
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kent and Kuyas is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and Kuyas Yatirim AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuyas Yatirim AS 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 Kuyas Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuyas Yatirim AS has no effect on the direction of Kent Gida i.e., Kent Gida and Kuyas Yatirim go up and down completely randomly.
Pair Corralation between Kent Gida and Kuyas Yatirim
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to generate 1.57 times more return on investment than Kuyas Yatirim. However, Kent Gida is 1.57 times more volatile than Kuyas Yatirim AS. It trades about 0.14 of its potential returns per unit of risk. Kuyas Yatirim AS is currently generating about 0.2 per unit of risk. If you would invest 80,900 in Kent Gida Maddeleri on August 28, 2024 and sell it today you would earn a total of 7,000 from holding Kent Gida Maddeleri or generate 8.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kent Gida Maddeleri vs. Kuyas Yatirim AS
Performance |
| Timeline |
| Kent Gida Maddeleri |
| Kuyas Yatirim AS |
Kent Gida and Kuyas Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kent Gida and Kuyas Yatirim
The main advantage of trading using opposite Kent Gida and Kuyas Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida position performs unexpectedly, Kuyas Yatirim 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 Kuyas Yatirim will offset losses from the drop in Kuyas Yatirim'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 |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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