Correlation Between Haci Omer and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Haci Omer and Sekerbank TAS 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 Haci Omer and Sekerbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Haci Omer Sabanci and Sekerbank TAS, you can compare the effects of market volatilities on Haci Omer and Sekerbank TAS 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 Haci Omer with a short position of Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haci Omer and Sekerbank TAS.
Diversification Opportunities for Haci Omer and Sekerbank TAS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Haci and Sekerbank is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Haci Omer Sabanci and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS and Haci Omer 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 Haci Omer Sabanci are associated (or correlated) with Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Haci Omer i.e., Haci Omer and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Haci Omer and Sekerbank TAS
Assuming the 90 days trading horizon Haci Omer Sabanci is expected to generate 0.86 times more return on investment than Sekerbank TAS. However, Haci Omer Sabanci is 1.17 times less risky than Sekerbank TAS. It trades about 0.08 of its potential returns per unit of risk. Sekerbank TAS is currently generating about -0.03 per unit of risk. If you would invest 6,003 in Haci Omer Sabanci on August 27, 2024 and sell it today you would earn a total of 3,167 from holding Haci Omer Sabanci or generate 52.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Haci Omer Sabanci vs. Sekerbank TAS
Performance |
| Timeline |
| Haci Omer Sabanci |
| Sekerbank TAS |
Haci Omer and Sekerbank TAS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Haci Omer and Sekerbank TAS
The main advantage of trading using opposite Haci Omer and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Haci Omer position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS's long position.| Haci Omer vs. Koc Holding AS | Haci Omer vs. Turkiye Sise ve | Haci Omer vs. Akbank TAS | Haci Omer vs. Turkiye Petrol Rafinerileri |
| Sekerbank TAS vs. Turkiye Sinai Kalkinma | Sekerbank TAS vs. Yapi ve Kredi | Sekerbank TAS vs. Kardemir Karabuk Demir | Sekerbank TAS vs. Turkiye Is Bankasi |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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