Correlation Between Silverline Endustri and Ekiz Kimya
Can any of the company-specific risk be diversified away by investing in both Silverline Endustri and Ekiz Kimya 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 Silverline Endustri and Ekiz Kimya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silverline Endustri ve and Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Silverline Endustri and Ekiz Kimya 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 Silverline Endustri with a short position of Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silverline Endustri and Ekiz Kimya.
Diversification Opportunities for Silverline Endustri and Ekiz Kimya
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Silverline and Ekiz is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Silverline Endustri ve and Ekiz Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekiz Kimya Sanayi and Silverline Endustri 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 Silverline Endustri ve are associated (or correlated) with Ekiz Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekiz Kimya Sanayi has no effect on the direction of Silverline Endustri i.e., Silverline Endustri and Ekiz Kimya go up and down completely randomly.
Pair Corralation between Silverline Endustri and Ekiz Kimya
Assuming the 90 days trading horizon Silverline Endustri ve is expected to generate 1.16 times more return on investment than Ekiz Kimya. However, Silverline Endustri is 1.16 times more volatile than Ekiz Kimya Sanayi. It trades about -0.14 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.19 per unit of risk. If you would invest 1,909 in Silverline Endustri ve on November 5, 2024 and sell it today you would lose (104.00) from holding Silverline Endustri ve or give up 5.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silverline Endustri ve vs. Ekiz Kimya Sanayi
Performance |
| Timeline |
| Silverline Endustri |
| Ekiz Kimya Sanayi |
Silverline Endustri and Ekiz Kimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silverline Endustri and Ekiz Kimya
The main advantage of trading using opposite Silverline Endustri and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silverline Endustri position performs unexpectedly, Ekiz Kimya 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 Ekiz Kimya will offset losses from the drop in Ekiz Kimya's long position.| Silverline Endustri vs. Cuhadaroglu Metal Sanayi | Silverline Endustri vs. MEGA METAL | Silverline Endustri vs. Qnb Finansbank AS | Silverline Endustri vs. Gentas Genel Metal |
| Ekiz Kimya vs. Katmerciler Arac Ustu | Ekiz Kimya vs. Is Finansal Kiralama | Ekiz Kimya vs. Seker Finansal Kiralama | Ekiz Kimya vs. Zorlu Enerji Elektrik |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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