Correlation Between Kent Gida and Seker Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Kent Gida and Seker Gayrimenkul 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 Seker Gayrimenkul 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 Seker Gayrimenkul Yatirim, you can compare the effects of market volatilities on Kent Gida and Seker Gayrimenkul 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 Seker Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Seker Gayrimenkul.
Diversification Opportunities for Kent Gida and Seker Gayrimenkul
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kent and Seker is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and Seker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seker Gayrimenkul Yatirim 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 Seker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seker Gayrimenkul Yatirim has no effect on the direction of Kent Gida i.e., Kent Gida and Seker Gayrimenkul go up and down completely randomly.
Pair Corralation between Kent Gida and Seker Gayrimenkul
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to generate 1.41 times more return on investment than Seker Gayrimenkul. However, Kent Gida is 1.41 times more volatile than Seker Gayrimenkul Yatirim. It trades about 0.05 of its potential returns per unit of risk. Seker Gayrimenkul Yatirim is currently generating about 0.0 per unit of risk. If you would invest 78,200 in Kent Gida Maddeleri on September 14, 2024 and sell it today you would earn a total of 26,300 from holding Kent Gida Maddeleri or generate 33.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.63% |
| Values | Daily Returns |
Kent Gida Maddeleri vs. Seker Gayrimenkul Yatirim
Performance |
| Timeline |
| Kent Gida Maddeleri |
| Seker Gayrimenkul Yatirim |
Kent Gida and Seker Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kent Gida and Seker Gayrimenkul
The main advantage of trading using opposite Kent Gida and Seker Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida position performs unexpectedly, Seker Gayrimenkul 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 Seker Gayrimenkul will offset losses from the drop in Seker Gayrimenkul's long position.| Kent Gida vs. Eregli Demir ve | Kent Gida vs. Turkiye Petrol Rafinerileri | Kent Gida vs. Turkiye Sise ve | Kent Gida vs. Ford Otomotiv 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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