Correlation Between Smart Gunes and E Data
Can any of the company-specific risk be diversified away by investing in both Smart Gunes and E Data 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 Smart Gunes and E Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Smart Gunes Enerjisi and E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on Smart Gunes and E Data 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 Smart Gunes with a short position of E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Smart Gunes and E Data.
Diversification Opportunities for Smart Gunes and E Data
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Smart and EDATA is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Smart Gunes Enerjisi and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji and Smart Gunes 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 Smart Gunes Enerjisi are associated (or correlated) with E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Smart Gunes i.e., Smart Gunes and E Data go up and down completely randomly.
Pair Corralation between Smart Gunes and E Data
Assuming the 90 days trading horizon Smart Gunes Enerjisi is expected to generate 1.3 times more return on investment than E Data. However, Smart Gunes is 1.3 times more volatile than E Data Teknoloji Pazarlama. It trades about 0.09 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.04 per unit of risk. If you would invest 3,766 in Smart Gunes Enerjisi on September 4, 2024 and sell it today you would earn a total of 158.00 from holding Smart Gunes Enerjisi or generate 4.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Smart Gunes Enerjisi vs. E Data Teknoloji Pazarlama
Performance |
| Timeline |
| Smart Gunes Enerjisi |
| E Data Teknoloji |
Smart Gunes and E Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Smart Gunes and E Data
The main advantage of trading using opposite Smart Gunes and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Smart Gunes position performs unexpectedly, E Data 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 E Data will offset losses from the drop in E Data's long position.| Smart Gunes vs. Silverline Endustri ve | Smart Gunes vs. Elite Naturel Organik | Smart Gunes vs. Frigo Pak Gida Maddeleri |
| E Data vs. MEGA METAL | E Data vs. Cuhadaroglu Metal Sanayi | E Data vs. Silverline Endustri ve | E Data vs. Turkish Airlines |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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