Correlation Between Sekerbank TAS and Frigo Pak
Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and Frigo Pak 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 Frigo Pak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekerbank TAS and Frigo Pak Gida Maddeleri, you can compare the effects of market volatilities on Sekerbank TAS and Frigo Pak 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 Frigo Pak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Frigo Pak.
Diversification Opportunities for Sekerbank TAS and Frigo Pak
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sekerbank and Frigo is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Frigo Pak Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frigo Pak Gida 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 Frigo Pak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frigo Pak Gida has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Frigo Pak go up and down completely randomly.
Pair Corralation between Sekerbank TAS and Frigo Pak
Assuming the 90 days trading horizon Sekerbank TAS is expected to under-perform the Frigo Pak. In addition to that, Sekerbank TAS is 1.63 times more volatile than Frigo Pak Gida Maddeleri. It trades about -0.07 of its total potential returns per unit of risk. Frigo Pak Gida Maddeleri is currently generating about 0.02 per unit of volatility. If you would invest 806.00 in Frigo Pak Gida Maddeleri on October 21, 2024 and sell it today you would earn a total of 5.00 from holding Frigo Pak Gida Maddeleri or generate 0.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sekerbank TAS vs. Frigo Pak Gida Maddeleri
Performance |
| Timeline |
| Sekerbank TAS |
| Frigo Pak Gida |
Sekerbank TAS and Frigo Pak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekerbank TAS and Frigo Pak
The main advantage of trading using opposite Sekerbank TAS and Frigo Pak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS position performs unexpectedly, Frigo Pak 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 Frigo Pak will offset losses from the drop in Frigo Pak'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 |
| Frigo Pak vs. MEGA METAL | Frigo Pak vs. Borlease Otomotiv AS | Frigo Pak vs. Politeknik Metal Sanayi | Frigo Pak vs. Bms Birlesik Metal |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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