Correlation Between Kuyas Yatirim and Dagi Giyim
Can any of the company-specific risk be diversified away by investing in both Kuyas Yatirim and Dagi Giyim 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 Kuyas Yatirim and Dagi Giyim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuyas Yatirim AS and Dagi Giyim Sanayi, you can compare the effects of market volatilities on Kuyas Yatirim and Dagi Giyim 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 Kuyas Yatirim with a short position of Dagi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuyas Yatirim and Dagi Giyim.
Diversification Opportunities for Kuyas Yatirim and Dagi Giyim
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kuyas and Dagi is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kuyas Yatirim AS and Dagi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Giyim Sanayi and Kuyas Yatirim 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 Kuyas Yatirim AS are associated (or correlated) with Dagi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Giyim Sanayi has no effect on the direction of Kuyas Yatirim i.e., Kuyas Yatirim and Dagi Giyim go up and down completely randomly.
Pair Corralation between Kuyas Yatirim and Dagi Giyim
Assuming the 90 days trading horizon Kuyas Yatirim is expected to generate 5.42 times less return on investment than Dagi Giyim. But when comparing it to its historical volatility, Kuyas Yatirim AS is 1.5 times less risky than Dagi Giyim. It trades about 0.08 of its potential returns per unit of risk. Dagi Giyim Sanayi is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 815.00 in Dagi Giyim Sanayi on September 13, 2024 and sell it today you would earn a total of 683.00 from holding Dagi Giyim Sanayi or generate 83.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kuyas Yatirim AS vs. Dagi Giyim Sanayi
Performance |
| Timeline |
| Kuyas Yatirim AS |
| Dagi Giyim Sanayi |
Kuyas Yatirim and Dagi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kuyas Yatirim and Dagi Giyim
The main advantage of trading using opposite Kuyas Yatirim and Dagi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuyas Yatirim position performs unexpectedly, Dagi Giyim 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 Dagi Giyim will offset losses from the drop in Dagi Giyim's long position.| Kuyas Yatirim vs. Politeknik Metal Sanayi | Kuyas Yatirim vs. MEGA METAL | Kuyas Yatirim vs. Sodas Sodyum Sanayi | Kuyas Yatirim vs. Bms Birlesik Metal |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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