Correlation Between Petrokent Turizm and Datagate Bilgisayar
Can any of the company-specific risk be diversified away by investing in both Petrokent Turizm and Datagate Bilgisayar 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 Petrokent Turizm and Datagate Bilgisayar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrokent Turizm AS and Datagate Bilgisayar Malzemeleri, you can compare the effects of market volatilities on Petrokent Turizm and Datagate Bilgisayar 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 Petrokent Turizm with a short position of Datagate Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrokent Turizm and Datagate Bilgisayar.
Diversification Opportunities for Petrokent Turizm and Datagate Bilgisayar
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Petrokent and Datagate is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Petrokent Turizm AS and Datagate Bilgisayar Malzemeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagate Bilgisayar and Petrokent Turizm 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 Petrokent Turizm AS are associated (or correlated) with Datagate Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagate Bilgisayar has no effect on the direction of Petrokent Turizm i.e., Petrokent Turizm and Datagate Bilgisayar go up and down completely randomly.
Pair Corralation between Petrokent Turizm and Datagate Bilgisayar
Assuming the 90 days trading horizon Petrokent Turizm is expected to generate 2.42 times less return on investment than Datagate Bilgisayar. In addition to that, Petrokent Turizm is 1.05 times more volatile than Datagate Bilgisayar Malzemeleri. It trades about 0.02 of its total potential returns per unit of risk. Datagate Bilgisayar Malzemeleri is currently generating about 0.06 per unit of volatility. If you would invest 2,716 in Datagate Bilgisayar Malzemeleri on September 14, 2024 and sell it today you would earn a total of 1,484 from holding Datagate Bilgisayar Malzemeleri or generate 54.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petrokent Turizm AS vs. Datagate Bilgisayar Malzemeler
Performance |
| Timeline |
| Petrokent Turizm |
| Datagate Bilgisayar |
Petrokent Turizm and Datagate Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrokent Turizm and Datagate Bilgisayar
The main advantage of trading using opposite Petrokent Turizm and Datagate Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrokent Turizm position performs unexpectedly, Datagate Bilgisayar 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 Datagate Bilgisayar will offset losses from the drop in Datagate Bilgisayar's long position.| Petrokent Turizm vs. Bms Birlesik Metal | Petrokent Turizm vs. Koza Anadolu Metal | Petrokent Turizm vs. CEO Event Medya | Petrokent Turizm vs. Creditwest Faktoring AS |
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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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