Correlation Between Turkiye Sise and Demisas Dokum
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Demisas Dokum 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 Turkiye Sise and Demisas Dokum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sise ve and Demisas Dokum Emaye, you can compare the effects of market volatilities on Turkiye Sise and Demisas Dokum 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 Turkiye Sise with a short position of Demisas Dokum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Demisas Dokum.
Diversification Opportunities for Turkiye Sise and Demisas Dokum
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turkiye and Demisas is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Demisas Dokum Emaye in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Demisas Dokum Emaye and Turkiye Sise 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 Turkiye Sise ve are associated (or correlated) with Demisas Dokum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Demisas Dokum Emaye has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Demisas Dokum go up and down completely randomly.
Pair Corralation between Turkiye Sise and Demisas Dokum
Assuming the 90 days trading horizon Turkiye Sise ve is expected to generate 0.28 times more return on investment than Demisas Dokum. However, Turkiye Sise ve is 3.57 times less risky than Demisas Dokum. It trades about -0.22 of its potential returns per unit of risk. Demisas Dokum Emaye is currently generating about -0.16 per unit of risk. If you would invest 3,846 in Turkiye Sise ve on November 28, 2024 and sell it today you would lose (270.00) from holding Turkiye Sise ve or give up 7.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turkiye Sise ve vs. Demisas Dokum Emaye
Performance |
| Timeline |
| Turkiye Sise ve |
| Demisas Dokum Emaye |
Turkiye Sise and Demisas Dokum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sise and Demisas Dokum
The main advantage of trading using opposite Turkiye Sise and Demisas Dokum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise position performs unexpectedly, Demisas Dokum 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 Demisas Dokum will offset losses from the drop in Demisas Dokum's long position.| Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise vs. Ford Otomotiv Sanayi |
| Demisas Dokum vs. Koza Altin Isletmeleri | Demisas Dokum vs. Ipek Dogal Enerji | Demisas Dokum vs. Petkim Petrokimya Holding | Demisas Dokum vs. Kardemir Karabuk Demir |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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