Correlation Between Prizma Pres and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Prizma Pres and Ege Endustri 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 Prizma Pres and Ege Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prizma Pres Matbaacilik and Ege Endustri ve, you can compare the effects of market volatilities on Prizma Pres and Ege Endustri 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 Prizma Pres with a short position of Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prizma Pres and Ege Endustri.
Diversification Opportunities for Prizma Pres and Ege Endustri
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Prizma and Ege is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Prizma Pres Matbaacilik and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve and Prizma Pres 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 Prizma Pres Matbaacilik are associated (or correlated) with Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Prizma Pres i.e., Prizma Pres and Ege Endustri go up and down completely randomly.
Pair Corralation between Prizma Pres and Ege Endustri
Assuming the 90 days trading horizon Prizma Pres Matbaacilik is expected to under-perform the Ege Endustri. In addition to that, Prizma Pres is 1.98 times more volatile than Ege Endustri ve. It trades about -0.64 of its total potential returns per unit of risk. Ege Endustri ve is currently generating about -0.14 per unit of volatility. If you would invest 1,114,250 in Ege Endustri ve on September 13, 2024 and sell it today you would lose (66,000) from holding Ege Endustri ve or give up 5.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prizma Pres Matbaacilik vs. Ege Endustri ve
Performance |
| Timeline |
| Prizma Pres Matbaacilik |
| Ege Endustri ve |
Prizma Pres and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prizma Pres and Ege Endustri
The main advantage of trading using opposite Prizma Pres and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prizma Pres position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri's long position.| Prizma Pres vs. CEO Event Medya | Prizma Pres vs. Cuhadaroglu Metal Sanayi | Prizma Pres vs. Silverline Endustri ve | Prizma Pres vs. Politeknik Metal Sanayi |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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