Correlation Between Turk Tuborg and Kent Gida
Can any of the company-specific risk be diversified away by investing in both Turk Tuborg and Kent Gida 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 Turk Tuborg and Kent Gida into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turk Tuborg Bira and Kent Gida Maddeleri, you can compare the effects of market volatilities on Turk Tuborg and Kent Gida 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 Turk Tuborg with a short position of Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Tuborg and Kent Gida.
Diversification Opportunities for Turk Tuborg and Kent Gida
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Turk and Kent is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Turk Tuborg Bira and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri and Turk Tuborg 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 Turk Tuborg Bira are associated (or correlated) with Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Turk Tuborg i.e., Turk Tuborg and Kent Gida go up and down completely randomly.
Pair Corralation between Turk Tuborg and Kent Gida
Assuming the 90 days trading horizon Turk Tuborg Bira is expected to generate 0.77 times more return on investment than Kent Gida. However, Turk Tuborg Bira is 1.29 times less risky than Kent Gida. It trades about 0.11 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.03 per unit of risk. If you would invest 12,800 in Turk Tuborg Bira on August 31, 2024 and sell it today you would earn a total of 720.00 from holding Turk Tuborg Bira or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Tuborg Bira vs. Kent Gida Maddeleri
Performance |
| Timeline |
| Turk Tuborg Bira |
| Kent Gida Maddeleri |
Turk Tuborg and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Tuborg and Kent Gida
The main advantage of trading using opposite Turk Tuborg and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Tuborg position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida's long position.| Turk Tuborg vs. Eregli Demir ve | Turk Tuborg vs. Turkiye Petrol Rafinerileri | Turk Tuborg vs. Turkiye Sise ve | Turk Tuborg vs. Ford Otomotiv Sanayi |
| Kent Gida vs. Eregli Demir ve | Kent Gida vs. Turkiye Petrol Rafinerileri | Kent Gida vs. Turkiye Sise ve | Kent Gida vs. Ford Otomotiv 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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