Correlation Between Sodas Sodyum and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both Sodas Sodyum and Smart Gunes 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 Sodas Sodyum and Smart Gunes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sodas Sodyum Sanayi and Smart Gunes Enerjisi, you can compare the effects of market volatilities on Sodas Sodyum and Smart Gunes 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 Sodas Sodyum with a short position of Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sodas Sodyum and Smart Gunes.
Diversification Opportunities for Sodas Sodyum and Smart Gunes
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sodas and Smart is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Sodas Sodyum Sanayi and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi and Sodas Sodyum 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 Sodas Sodyum Sanayi are associated (or correlated) with Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Sodas Sodyum i.e., Sodas Sodyum and Smart Gunes go up and down completely randomly.
Pair Corralation between Sodas Sodyum and Smart Gunes
Assuming the 90 days trading horizon Sodas Sodyum Sanayi is expected to under-perform the Smart Gunes. In addition to that, Sodas Sodyum is 1.18 times more volatile than Smart Gunes Enerjisi. It trades about -0.08 of its total potential returns per unit of risk. Smart Gunes Enerjisi is currently generating about -0.07 per unit of volatility. If you would invest 5,130 in Smart Gunes Enerjisi on September 1, 2024 and sell it today you would lose (1,206) from holding Smart Gunes Enerjisi or give up 23.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Sodas Sodyum Sanayi vs. Smart Gunes Enerjisi
Performance |
| Timeline |
| Sodas Sodyum Sanayi |
| Smart Gunes Enerjisi |
Sodas Sodyum and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sodas Sodyum and Smart Gunes
The main advantage of trading using opposite Sodas Sodyum and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sodas Sodyum position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' long position.| Sodas Sodyum vs. Trend Gayrimenkul Yatirim | Sodas Sodyum vs. Trabzon Liman Isletmeciligi | Sodas Sodyum vs. Halk Gayrimenkul Yatirim | Sodas Sodyum vs. Inveo Yatirim Holding |
| Smart Gunes vs. MEGA METAL | Smart Gunes vs. Koza Anadolu Metal | Smart Gunes vs. Bms Birlesik Metal | Smart Gunes vs. Sodas Sodyum Sanayi |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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