Correlation Between Kent Gida and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both Kent Gida and Margun Enerji 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 Margun Enerji 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 Margun Enerji Uretim, you can compare the effects of market volatilities on Kent Gida and Margun Enerji 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 Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Margun Enerji.
Diversification Opportunities for Kent Gida and Margun Enerji
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kent and Margun is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and Margun Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Margun Enerji Uretim 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 Margun Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Margun Enerji Uretim has no effect on the direction of Kent Gida i.e., Kent Gida and Margun Enerji go up and down completely randomly.
Pair Corralation between Kent Gida and Margun Enerji
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to generate 1.26 times more return on investment than Margun Enerji. However, Kent Gida is 1.26 times more volatile than Margun Enerji Uretim. It trades about 0.08 of its potential returns per unit of risk. Margun Enerji Uretim is currently generating about 0.04 per unit of risk. If you would invest 21,050 in Kent Gida Maddeleri on August 24, 2024 and sell it today you would earn a total of 66,800 from holding Kent Gida Maddeleri or generate 317.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.99% |
| Values | Daily Returns |
Kent Gida Maddeleri vs. Margun Enerji Uretim
Performance |
| Timeline |
| Kent Gida Maddeleri |
| Margun Enerji Uretim |
Kent Gida and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kent Gida and Margun Enerji
The main advantage of trading using opposite Kent Gida and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida position performs unexpectedly, Margun Enerji 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 Margun Enerji will offset losses from the drop in Margun Enerji's long position.| Kent Gida vs. Turkish Airlines | Kent Gida vs. Politeknik Metal Sanayi | Kent Gida vs. Cuhadaroglu Metal Sanayi | Kent Gida vs. E Data Teknoloji Pazarlama |
| Margun Enerji vs. CEO Event Medya | Margun Enerji vs. MEGA METAL | Margun Enerji vs. Bms Birlesik Metal | Margun Enerji vs. Politeknik 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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