Correlation Between Sekerbank TAS and Elite Naturel
Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and Elite Naturel 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 Elite Naturel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekerbank TAS and Elite Naturel Organik, you can compare the effects of market volatilities on Sekerbank TAS and Elite Naturel 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 Elite Naturel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Elite Naturel.
Diversification Opportunities for Sekerbank TAS and Elite Naturel
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sekerbank and Elite is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Elite Naturel Organik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Naturel Organik 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 Elite Naturel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Naturel Organik has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Elite Naturel go up and down completely randomly.
Pair Corralation between Sekerbank TAS and Elite Naturel
Assuming the 90 days trading horizon Sekerbank TAS is expected to under-perform the Elite Naturel. In addition to that, Sekerbank TAS is 1.99 times more volatile than Elite Naturel Organik. It trades about -0.12 of its total potential returns per unit of risk. Elite Naturel Organik is currently generating about -0.19 per unit of volatility. If you would invest 3,960 in Elite Naturel Organik on October 25, 2024 and sell it today you would lose (262.00) from holding Elite Naturel Organik or give up 6.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sekerbank TAS vs. Elite Naturel Organik
Performance |
| Timeline |
| Sekerbank TAS |
| Elite Naturel Organik |
Sekerbank TAS and Elite Naturel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekerbank TAS and Elite Naturel
The main advantage of trading using opposite Sekerbank TAS and Elite Naturel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS position performs unexpectedly, Elite Naturel 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 Elite Naturel will offset losses from the drop in Elite Naturel'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 |
| Elite Naturel vs. Cuhadaroglu Metal Sanayi | Elite Naturel vs. Silverline Endustri ve | Elite Naturel vs. Politeknik Metal Sanayi | Elite Naturel vs. Sekerbank TAS |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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