Correlation Between Marka Yatirim and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Marka Yatirim and Dow Jones 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 Marka Yatirim and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Marka Yatirim Holding and Dow Jones Industrial, you can compare the effects of market volatilities on Marka Yatirim and Dow Jones 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 Marka Yatirim with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Marka Yatirim and Dow Jones.
Diversification Opportunities for Marka Yatirim and Dow Jones
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Marka and Dow is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Marka Yatirim Holding and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Marka 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 Marka Yatirim Holding are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Marka Yatirim i.e., Marka Yatirim and Dow Jones go up and down completely randomly.
Pair Corralation between Marka Yatirim and Dow Jones
Assuming the 90 days trading horizon Marka Yatirim Holding is expected to generate 8.04 times more return on investment than Dow Jones. However, Marka Yatirim is 8.04 times more volatile than Dow Jones Industrial. It trades about 0.11 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 494.00 in Marka Yatirim Holding on September 13, 2024 and sell it today you would earn a total of 5,176 from holding Marka Yatirim Holding or generate 1047.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Marka Yatirim Holding vs. Dow Jones Industrial
Performance |
| Timeline |
Marka Yatirim and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Marka Yatirim Holding
Pair trading matchups for Marka Yatirim
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Marka Yatirim and Dow Jones
The main advantage of trading using opposite Marka Yatirim and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Marka Yatirim position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Marka Yatirim vs. Turkiye Kalkinma Bankasi | Marka Yatirim vs. CEO Event Medya | Marka Yatirim vs. Cuhadaroglu Metal Sanayi | Marka Yatirim vs. Gentas Genel Metal |
| Dow Jones vs. ChampionX | Dow Jones vs. Highway Holdings Limited | Dow Jones vs. Westinghouse Air Brake | Dow Jones vs. Cementos Pacasmayo SAA |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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