Correlation Between Migros Ticaret and Eregli Demir
Can any of the company-specific risk be diversified away by investing in both Migros Ticaret and Eregli Demir 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 Migros Ticaret and Eregli Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Migros Ticaret AS and Eregli Demir ve, you can compare the effects of market volatilities on Migros Ticaret and Eregli Demir 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 Migros Ticaret with a short position of Eregli Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Migros Ticaret and Eregli Demir.
Diversification Opportunities for Migros Ticaret and Eregli Demir
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Migros and Eregli is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Migros Ticaret AS and Eregli Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eregli Demir ve and Migros Ticaret 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 Migros Ticaret AS are associated (or correlated) with Eregli Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eregli Demir ve has no effect on the direction of Migros Ticaret i.e., Migros Ticaret and Eregli Demir go up and down completely randomly.
Pair Corralation between Migros Ticaret and Eregli Demir
Assuming the 90 days trading horizon Migros Ticaret AS is expected to generate 0.72 times more return on investment than Eregli Demir. However, Migros Ticaret AS is 1.39 times less risky than Eregli Demir. It trades about 0.43 of its potential returns per unit of risk. Eregli Demir ve is currently generating about 0.07 per unit of risk. If you would invest 44,938 in Migros Ticaret AS on September 12, 2024 and sell it today you would earn a total of 6,312 from holding Migros Ticaret AS or generate 14.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Migros Ticaret AS vs. Eregli Demir ve
Performance |
| Timeline |
| Migros Ticaret AS |
| Eregli Demir ve |
Migros Ticaret and Eregli Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Migros Ticaret and Eregli Demir
The main advantage of trading using opposite Migros Ticaret and Eregli Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Migros Ticaret position performs unexpectedly, Eregli Demir 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 Eregli Demir will offset losses from the drop in Eregli Demir's long position.| Migros Ticaret vs. Eregli Demir ve | Migros Ticaret vs. Turkiye Petrol Rafinerileri | Migros Ticaret vs. Turkiye Sise ve | Migros Ticaret vs. Ford Otomotiv Sanayi |
| Eregli Demir vs. Turkiye Sise ve | Eregli Demir vs. Turkiye Petrol Rafinerileri | Eregli Demir vs. Ford Otomotiv Sanayi | Eregli Demir vs. Petkim Petrokimya Holding |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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