Correlation Between Prizma Pres and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both Prizma Pres and Smart Gunes 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 Smart Gunes 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 Smart Gunes Enerjisi, you can compare the effects of market volatilities on Prizma Pres and Smart Gunes 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 Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prizma Pres and Smart Gunes.
Diversification Opportunities for Prizma Pres and Smart Gunes
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Prizma and Smart is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Prizma Pres Matbaacilik and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi 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 Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Prizma Pres i.e., Prizma Pres and Smart Gunes go up and down completely randomly.
Pair Corralation between Prizma Pres and Smart Gunes
Assuming the 90 days trading horizon Prizma Pres Matbaacilik is expected to generate 1.67 times more return on investment than Smart Gunes. However, Prizma Pres is 1.67 times more volatile than Smart Gunes Enerjisi. It trades about 0.06 of its potential returns per unit of risk. Smart Gunes Enerjisi is currently generating about 0.01 per unit of risk. If you would invest 243.00 in Prizma Pres Matbaacilik on August 30, 2024 and sell it today you would earn a total of 722.00 from holding Prizma Pres Matbaacilik or generate 297.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prizma Pres Matbaacilik vs. Smart Gunes Enerjisi
Performance |
| Timeline |
| Prizma Pres Matbaacilik |
| Smart Gunes Enerjisi |
Prizma Pres and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prizma Pres and Smart Gunes
The main advantage of trading using opposite Prizma Pres and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prizma Pres position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' long position.| Prizma Pres vs. Haci Omer Sabanci | Prizma Pres vs. Turkiye Petrol Rafinerileri | Prizma Pres vs. Turkiye Garanti Bankasi | Prizma Pres vs. Akbank TAS |
| Smart Gunes vs. Creditwest Faktoring AS | Smart Gunes vs. MEGA METAL | Smart Gunes vs. Trabzonspor Sportif Yatirim | Smart Gunes vs. Sodas Sodyum Sanayi |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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