Correlation Between Turkiye Kalkinma and Arcelik AS
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma and Arcelik AS 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 Turkiye Kalkinma and Arcelik AS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Kalkinma Bankasi and Arcelik AS, you can compare the effects of market volatilities on Turkiye Kalkinma and Arcelik AS 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 Turkiye Kalkinma with a short position of Arcelik AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and Arcelik AS.
Diversification Opportunities for Turkiye Kalkinma and Arcelik AS
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Turkiye and Arcelik is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi and Arcelik AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arcelik AS and Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi are associated (or correlated) with Arcelik AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arcelik AS has no effect on the direction of Turkiye Kalkinma i.e., Turkiye Kalkinma and Arcelik AS go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and Arcelik AS
Assuming the 90 days trading horizon Turkiye Kalkinma Bankasi is expected to generate 1.36 times more return on investment than Arcelik AS. However, Turkiye Kalkinma is 1.36 times more volatile than Arcelik AS. It trades about 0.0 of its potential returns per unit of risk. Arcelik AS is currently generating about -0.02 per unit of risk. If you would invest 1,660 in Turkiye Kalkinma Bankasi on August 25, 2024 and sell it today you would lose (187.00) from holding Turkiye Kalkinma Bankasi or give up 11.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. Arcelik AS
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| Arcelik AS |
Turkiye Kalkinma and Arcelik AS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and Arcelik AS
The main advantage of trading using opposite Turkiye Kalkinma and Arcelik AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma position performs unexpectedly, Arcelik AS 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 Arcelik AS will offset losses from the drop in Arcelik AS's long position.| Turkiye Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
| Arcelik AS vs. Qnb Finansbank AS | Arcelik AS vs. Kent Gida Maddeleri | Arcelik AS vs. QNB Finans Finansal | Arcelik AS vs. Turkiye Kalkinma Bankasi |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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