Correlation Between Turkiye Sise and Kustur Kusadasi
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Kustur Kusadasi 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 Kustur Kusadasi 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 Kustur Kusadasi Turizm, you can compare the effects of market volatilities on Turkiye Sise and Kustur Kusadasi 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 Kustur Kusadasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Kustur Kusadasi.
Diversification Opportunities for Turkiye Sise and Kustur Kusadasi
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Kustur is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Kustur Kusadasi Turizm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kustur Kusadasi Turizm 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 Kustur Kusadasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kustur Kusadasi Turizm has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Kustur Kusadasi go up and down completely randomly.
Pair Corralation between Turkiye Sise and Kustur Kusadasi
Assuming the 90 days trading horizon Turkiye Sise is expected to generate 9.45 times less return on investment than Kustur Kusadasi. But when comparing it to its historical volatility, Turkiye Sise ve is 2.88 times less risky than Kustur Kusadasi. It trades about 0.13 of its potential returns per unit of risk. Kustur Kusadasi Turizm is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 254,000 in Kustur Kusadasi Turizm on August 24, 2024 and sell it today you would earn a total of 135,750 from holding Kustur Kusadasi Turizm or generate 53.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Sise ve vs. Kustur Kusadasi Turizm
Performance |
| Timeline |
| Turkiye Sise ve |
| Kustur Kusadasi Turizm |
Turkiye Sise and Kustur Kusadasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sise and Kustur Kusadasi
The main advantage of trading using opposite Turkiye Sise and Kustur Kusadasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise position performs unexpectedly, Kustur Kusadasi 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 Kustur Kusadasi will offset losses from the drop in Kustur Kusadasi's long position.| Turkiye Sise vs. QNB Finans Finansal | Turkiye Sise vs. Pamel Yenilenebilir Elektrik | Turkiye Sise vs. Brisa Bridgestone Sabanci | Turkiye Sise vs. Dogus Gayrimenkul Yatirim |
| Kustur Kusadasi vs. Yibitas Yozgat Isci | Kustur Kusadasi vs. Ege Endustri ve | Kustur Kusadasi vs. Borusan Yatirim ve | Kustur Kusadasi vs. Turkiye Petrol Rafinerileri |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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