Correlation Between Trend Gayrimenkul and Alkim Kagit
Can any of the company-specific risk be diversified away by investing in both Trend Gayrimenkul and Alkim Kagit 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 Trend Gayrimenkul and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trend Gayrimenkul Yatirim and Alkim Kagit Sanayi, you can compare the effects of market volatilities on Trend Gayrimenkul and Alkim Kagit 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 Trend Gayrimenkul with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Gayrimenkul and Alkim Kagit.
Diversification Opportunities for Trend Gayrimenkul and Alkim Kagit
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Trend and Alkim is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Trend Gayrimenkul Yatirim and Alkim Kagit Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Kagit Sanayi and Trend Gayrimenkul 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 Trend Gayrimenkul Yatirim are associated (or correlated) with Alkim Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Kagit Sanayi has no effect on the direction of Trend Gayrimenkul i.e., Trend Gayrimenkul and Alkim Kagit go up and down completely randomly.
Pair Corralation between Trend Gayrimenkul and Alkim Kagit
Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to generate 1.44 times more return on investment than Alkim Kagit. However, Trend Gayrimenkul is 1.44 times more volatile than Alkim Kagit Sanayi. It trades about 0.09 of its potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about -0.03 per unit of risk. If you would invest 970.00 in Trend Gayrimenkul Yatirim on September 2, 2024 and sell it today you would earn a total of 175.00 from holding Trend Gayrimenkul Yatirim or generate 18.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trend Gayrimenkul Yatirim vs. Alkim Kagit Sanayi
Performance |
| Timeline |
| Trend Gayrimenkul Yatirim |
| Alkim Kagit Sanayi |
Trend Gayrimenkul and Alkim Kagit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trend Gayrimenkul and Alkim Kagit
The main advantage of trading using opposite Trend Gayrimenkul and Alkim Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trend Gayrimenkul position performs unexpectedly, Alkim Kagit 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 Alkim Kagit will offset losses from the drop in Alkim Kagit's long position.| Trend Gayrimenkul vs. Brisa Bridgestone Sabanci | Trend Gayrimenkul vs. Dogus Gayrimenkul Yatirim | Trend Gayrimenkul vs. IZDEMIR Enerji Elektrik | Trend Gayrimenkul vs. Logo Yazilim Sanayi |
| Alkim Kagit vs. Sekerbank TAS | Alkim Kagit vs. Gentas Genel Metal | Alkim Kagit vs. Politeknik Metal Sanayi | Alkim Kagit vs. Cuhadaroglu Metal 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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