Correlation Between Nigbas Nigde and Tumosan
Can any of the company-specific risk be diversified away by investing in both Nigbas Nigde and Tumosan 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 Nigbas Nigde and Tumosan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nigbas Nigde Beton and Tumosan Motor ve, you can compare the effects of market volatilities on Nigbas Nigde and Tumosan 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 Nigbas Nigde with a short position of Tumosan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigbas Nigde and Tumosan.
Diversification Opportunities for Nigbas Nigde and Tumosan
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nigbas and Tumosan is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Nigbas Nigde Beton and Tumosan Motor ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tumosan Motor ve and Nigbas Nigde 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 Nigbas Nigde Beton are associated (or correlated) with Tumosan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tumosan Motor ve has no effect on the direction of Nigbas Nigde i.e., Nigbas Nigde and Tumosan go up and down completely randomly.
Pair Corralation between Nigbas Nigde and Tumosan
Assuming the 90 days trading horizon Nigbas Nigde Beton is expected to generate 1.23 times more return on investment than Tumosan. However, Nigbas Nigde is 1.23 times more volatile than Tumosan Motor ve. It trades about 0.0 of its potential returns per unit of risk. Tumosan Motor ve is currently generating about -0.02 per unit of risk. If you would invest 1,870 in Nigbas Nigde Beton on September 3, 2024 and sell it today you would lose (10.00) from holding Nigbas Nigde Beton or give up 0.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nigbas Nigde Beton vs. Tumosan Motor ve
Performance |
| Timeline |
| Nigbas Nigde Beton |
| Tumosan Motor ve |
Nigbas Nigde and Tumosan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nigbas Nigde and Tumosan
The main advantage of trading using opposite Nigbas Nigde and Tumosan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nigbas Nigde position performs unexpectedly, Tumosan 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 Tumosan will offset losses from the drop in Tumosan's long position.| Nigbas Nigde vs. MEGA METAL | Nigbas Nigde vs. Gentas Genel Metal | Nigbas Nigde vs. Politeknik Metal Sanayi | Nigbas Nigde vs. Mackolik Internet Hizmetleri |
| Tumosan vs. Politeknik Metal Sanayi | Tumosan vs. Akbank TAS | Tumosan vs. Turkiye Kalkinma Bankasi | Tumosan 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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