Correlation Between Sekerbank TAS and Nurol Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and Nurol Gayrimenkul 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 Nurol Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sekerbank TAS and Nurol Gayrimenkul Yatirim, you can compare the effects of market volatilities on Sekerbank TAS and Nurol Gayrimenkul 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 Nurol Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Nurol Gayrimenkul.
Diversification Opportunities for Sekerbank TAS and Nurol Gayrimenkul
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sekerbank and Nurol is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Nurol Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurol Gayrimenkul Yatirim 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 Nurol Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurol Gayrimenkul Yatirim has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Nurol Gayrimenkul go up and down completely randomly.
Pair Corralation between Sekerbank TAS and Nurol Gayrimenkul
Assuming the 90 days trading horizon Sekerbank TAS is expected to generate 1.72 times more return on investment than Nurol Gayrimenkul. However, Sekerbank TAS is 1.72 times more volatile than Nurol Gayrimenkul Yatirim. It trades about 0.21 of its potential returns per unit of risk. Nurol Gayrimenkul Yatirim is currently generating about -0.2 per unit of risk. If you would invest 427.00 in Sekerbank TAS on September 23, 2024 and sell it today you would earn a total of 55.00 from holding Sekerbank TAS or generate 12.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sekerbank TAS vs. Nurol Gayrimenkul Yatirim
Performance |
| Timeline |
| Sekerbank TAS |
| Nurol Gayrimenkul Yatirim |
Sekerbank TAS and Nurol Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sekerbank TAS and Nurol Gayrimenkul
The main advantage of trading using opposite Sekerbank TAS and Nurol Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sekerbank TAS position performs unexpectedly, Nurol Gayrimenkul 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 Nurol Gayrimenkul will offset losses from the drop in Nurol Gayrimenkul'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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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