Correlation Between Sok Marketler and Eregli Demir
Can any of the company-specific risk be diversified away by investing in both Sok Marketler and Eregli Demir 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 Sok Marketler and Eregli Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sok Marketler Ticaret and Eregli Demir ve, you can compare the effects of market volatilities on Sok Marketler and Eregli Demir 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 Sok Marketler with a short position of Eregli Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sok Marketler and Eregli Demir.
Diversification Opportunities for Sok Marketler and Eregli Demir
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sok and Eregli is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Sok Marketler Ticaret and Eregli Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eregli Demir ve and Sok Marketler 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 Sok Marketler Ticaret are associated (or correlated) with Eregli Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eregli Demir ve has no effect on the direction of Sok Marketler i.e., Sok Marketler and Eregli Demir go up and down completely randomly.
Pair Corralation between Sok Marketler and Eregli Demir
Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to generate 0.94 times more return on investment than Eregli Demir. However, Sok Marketler Ticaret is 1.06 times less risky than Eregli Demir. It trades about 0.17 of its potential returns per unit of risk. Eregli Demir ve is currently generating about 0.13 per unit of risk. If you would invest 3,912 in Sok Marketler Ticaret on September 14, 2024 and sell it today you would earn a total of 264.00 from holding Sok Marketler Ticaret or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sok Marketler Ticaret vs. Eregli Demir ve
Performance |
| Timeline |
| Sok Marketler Ticaret |
| Eregli Demir ve |
Sok Marketler and Eregli Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sok Marketler and Eregli Demir
The main advantage of trading using opposite Sok Marketler and Eregli Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sok Marketler position performs unexpectedly, Eregli Demir 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 Eregli Demir will offset losses from the drop in Eregli Demir's long position.| Sok Marketler vs. Eregli Demir ve | Sok Marketler vs. Turkiye Petrol Rafinerileri | Sok Marketler vs. Turkiye Sise ve | Sok Marketler vs. Ford Otomotiv Sanayi |
| Eregli Demir vs. Ayes Celik Hasir | Eregli Demir vs. Trend Gayrimenkul Yatirim | Eregli Demir vs. Ege Endustri ve | Eregli Demir vs. Alarko Carrier 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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