Correlation Between Turkiye Kalkinma and Kent Gida
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Turkiye Kalkinma and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and Kent Gida.
Diversification Opportunities for Turkiye Kalkinma and Kent Gida
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Kent is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Turkiye Kalkinma i.e., Turkiye Kalkinma and Kent Gida go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and Kent Gida
Assuming the 90 days trading horizon Turkiye Kalkinma is expected to generate 6.82 times less return on investment than Kent Gida. But when comparing it to its historical volatility, Turkiye Kalkinma Bankasi is 1.5 times less risky than Kent Gida. It trades about 0.01 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 52,950 in Kent Gida Maddeleri on November 2, 2024 and sell it today you would earn a total of 34,400 from holding Kent Gida Maddeleri or generate 64.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. Kent Gida Maddeleri
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| Kent Gida Maddeleri |
Turkiye Kalkinma and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and Kent Gida
The main advantage of trading using opposite Turkiye Kalkinma and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida's long position.| Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma | Turkiye Kalkinma vs. ENKA Insaat ve |
| Kent Gida vs. Bms Birlesik Metal | Kent Gida vs. Gentas Genel Metal | Kent Gida vs. Turkiye Kalkinma Bankasi | Kent Gida vs. Koza Anadolu Metal |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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