Correlation Between Seker Finansal and Karsan Otomotiv
Can any of the company-specific risk be diversified away by investing in both Seker Finansal and Karsan Otomotiv 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 Seker Finansal and Karsan Otomotiv into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seker Finansal Kiralama and Karsan Otomotiv Sanayi, you can compare the effects of market volatilities on Seker Finansal and Karsan Otomotiv 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 Seker Finansal with a short position of Karsan Otomotiv. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seker Finansal and Karsan Otomotiv.
Diversification Opportunities for Seker Finansal and Karsan Otomotiv
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Seker and Karsan is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Seker Finansal Kiralama and Karsan Otomotiv Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Karsan Otomotiv Sanayi and Seker Finansal 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 Seker Finansal Kiralama are associated (or correlated) with Karsan Otomotiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Karsan Otomotiv Sanayi has no effect on the direction of Seker Finansal i.e., Seker Finansal and Karsan Otomotiv go up and down completely randomly.
Pair Corralation between Seker Finansal and Karsan Otomotiv
Assuming the 90 days trading horizon Seker Finansal Kiralama is expected to generate 0.52 times more return on investment than Karsan Otomotiv. However, Seker Finansal Kiralama is 1.93 times less risky than Karsan Otomotiv. It trades about -0.06 of its potential returns per unit of risk. Karsan Otomotiv Sanayi is currently generating about -0.2 per unit of risk. If you would invest 829.00 in Seker Finansal Kiralama on August 30, 2024 and sell it today you would lose (42.00) from holding Seker Finansal Kiralama or give up 5.07% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seker Finansal Kiralama vs. Karsan Otomotiv Sanayi
Performance |
| Timeline |
| Seker Finansal Kiralama |
| Karsan Otomotiv Sanayi |
Seker Finansal and Karsan Otomotiv Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seker Finansal and Karsan Otomotiv
The main advantage of trading using opposite Seker Finansal and Karsan Otomotiv positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seker Finansal position performs unexpectedly, Karsan Otomotiv 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 Karsan Otomotiv will offset losses from the drop in Karsan Otomotiv's long position.| Seker Finansal vs. Galatasaray Sportif Sinai | Seker Finansal vs. Politeknik Metal Sanayi | Seker Finansal vs. Trabzonspor Sportif Yatirim | Seker Finansal vs. MEGA METAL |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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