Correlation Between Senkron Guvenlik and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Senkron Guvenlik and Ege Endustri 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 Senkron Guvenlik and Ege Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Senkron Guvenlik ve and Ege Endustri ve, you can compare the effects of market volatilities on Senkron Guvenlik and Ege Endustri 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 Senkron Guvenlik with a short position of Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senkron Guvenlik and Ege Endustri.
Diversification Opportunities for Senkron Guvenlik and Ege Endustri
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Senkron and Ege is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Senkron Guvenlik ve and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve and Senkron Guvenlik 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 Senkron Guvenlik ve are associated (or correlated) with Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Senkron Guvenlik i.e., Senkron Guvenlik and Ege Endustri go up and down completely randomly.
Pair Corralation between Senkron Guvenlik and Ege Endustri
Assuming the 90 days trading horizon Senkron Guvenlik ve is expected to generate 1.43 times more return on investment than Ege Endustri. However, Senkron Guvenlik is 1.43 times more volatile than Ege Endustri ve. It trades about 0.07 of its potential returns per unit of risk. Ege Endustri ve is currently generating about 0.07 per unit of risk. If you would invest 2,494 in Senkron Guvenlik ve on September 12, 2024 and sell it today you would earn a total of 2,806 from holding Senkron Guvenlik ve or generate 112.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Senkron Guvenlik ve vs. Ege Endustri ve
Performance |
| Timeline |
| Senkron Guvenlik |
| Ege Endustri ve |
Senkron Guvenlik and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Senkron Guvenlik and Ege Endustri
The main advantage of trading using opposite Senkron Guvenlik and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senkron Guvenlik position performs unexpectedly, Ege Endustri 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 Endustri will offset losses from the drop in Ege Endustri's long position.| Senkron Guvenlik vs. Ege Endustri ve | Senkron Guvenlik vs. Turkiye Petrol Rafinerileri | Senkron Guvenlik vs. Turkiye Garanti Bankasi | Senkron Guvenlik vs. Turkish Airlines |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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