Correlation Between Trend Gayrimenkul and Frigo Pak
Can any of the company-specific risk be diversified away by investing in both Trend Gayrimenkul and Frigo Pak 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 Frigo Pak 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 Frigo Pak Gida Maddeleri, you can compare the effects of market volatilities on Trend Gayrimenkul and Frigo Pak 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 Frigo Pak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Gayrimenkul and Frigo Pak.
Diversification Opportunities for Trend Gayrimenkul and Frigo Pak
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Trend and Frigo is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Trend Gayrimenkul Yatirim and Frigo Pak Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Frigo Pak Gida 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 Frigo Pak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Frigo Pak Gida has no effect on the direction of Trend Gayrimenkul i.e., Trend Gayrimenkul and Frigo Pak go up and down completely randomly.
Pair Corralation between Trend Gayrimenkul and Frigo Pak
Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to generate 2.1 times more return on investment than Frigo Pak. However, Trend Gayrimenkul is 2.1 times more volatile than Frigo Pak Gida Maddeleri. It trades about 0.05 of its potential returns per unit of risk. Frigo Pak Gida Maddeleri is currently generating about 0.01 per unit of risk. If you would invest 639.00 in Trend Gayrimenkul Yatirim on September 13, 2024 and sell it today you would earn a total of 514.00 from holding Trend Gayrimenkul Yatirim or generate 80.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Trend Gayrimenkul Yatirim vs. Frigo Pak Gida Maddeleri
Performance |
| Timeline |
| Trend Gayrimenkul Yatirim |
| Frigo Pak Gida |
Trend Gayrimenkul and Frigo Pak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trend Gayrimenkul and Frigo Pak
The main advantage of trading using opposite Trend Gayrimenkul and Frigo Pak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trend Gayrimenkul position performs unexpectedly, Frigo Pak 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 Frigo Pak will offset losses from the drop in Frigo Pak's long position.| Trend Gayrimenkul vs. ICBC Turkey Bank | Trend Gayrimenkul vs. Sodas Sodyum Sanayi | Trend Gayrimenkul vs. Datagate Bilgisayar Malzemeleri | Trend Gayrimenkul vs. Gentas Genel Metal |
| Frigo Pak vs. Cuhadaroglu Metal Sanayi | Frigo Pak vs. Gentas Genel Metal | Frigo Pak vs. Sekerbank TAS | Frigo Pak vs. Borlease Otomotiv AS |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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