Correlation Between Sekerbank TAS and Ege Gubre
Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and Ege Gubre 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 Sekerbank TAS and Ege Gubre into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekerbank TAS and Ege Gubre Sanayi, you can compare the effects of market volatilities on Sekerbank TAS and Ege Gubre 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 Sekerbank TAS with a short position of Ege Gubre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Ege Gubre.
Diversification Opportunities for Sekerbank TAS and Ege Gubre
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sekerbank and Ege is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Ege Gubre Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Gubre Sanayi and Sekerbank TAS 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 Sekerbank TAS are associated (or correlated) with Ege Gubre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Gubre Sanayi has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Ege Gubre go up and down completely randomly.
Pair Corralation between Sekerbank TAS and Ege Gubre
Assuming the 90 days trading horizon Sekerbank TAS is expected to under-perform the Ege Gubre. But the stock apears to be less risky and, when comparing its historical volatility, Sekerbank TAS is 1.15 times less risky than Ege Gubre. The stock trades about -0.01 of its potential returns per unit of risk. The Ege Gubre Sanayi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 4,746 in Ege Gubre Sanayi on September 2, 2024 and sell it today you would earn a total of 1,024 from holding Ege Gubre Sanayi or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sekerbank TAS vs. Ege Gubre Sanayi
Performance |
| Timeline |
| Sekerbank TAS |
| Ege Gubre Sanayi |
Sekerbank TAS and Ege Gubre Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekerbank TAS and Ege Gubre
The main advantage of trading using opposite Sekerbank TAS and Ege Gubre positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS position performs unexpectedly, Ege Gubre 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 Ege Gubre will offset losses from the drop in Ege Gubre's long position.| Sekerbank TAS vs. Turkiye Sinai Kalkinma | Sekerbank TAS vs. Yapi ve Kredi | Sekerbank TAS vs. Kardemir Karabuk Demir | Sekerbank TAS vs. Turkiye Is Bankasi |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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