Correlation Between Trend Gayrimenkul and IZDEMIR Enerji
Can any of the company-specific risk be diversified away by investing in both Trend Gayrimenkul and IZDEMIR Enerji 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 IZDEMIR Enerji 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 IZDEMIR Enerji Elektrik, you can compare the effects of market volatilities on Trend Gayrimenkul and IZDEMIR Enerji 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 IZDEMIR Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Gayrimenkul and IZDEMIR Enerji.
Diversification Opportunities for Trend Gayrimenkul and IZDEMIR Enerji
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Trend and IZDEMIR is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Trend Gayrimenkul Yatirim and IZDEMIR Enerji Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IZDEMIR Enerji Elektrik 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 IZDEMIR Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IZDEMIR Enerji Elektrik has no effect on the direction of Trend Gayrimenkul i.e., Trend Gayrimenkul and IZDEMIR Enerji go up and down completely randomly.
Pair Corralation between Trend Gayrimenkul and IZDEMIR Enerji
Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to generate 1.31 times more return on investment than IZDEMIR Enerji. However, Trend Gayrimenkul is 1.31 times more volatile than IZDEMIR Enerji Elektrik. It trades about 0.06 of its potential returns per unit of risk. IZDEMIR Enerji Elektrik is currently generating about -0.04 per unit of risk. If you would invest 810.00 in Trend Gayrimenkul Yatirim on September 2, 2024 and sell it today you would earn a total of 335.00 from holding Trend Gayrimenkul Yatirim or generate 41.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trend Gayrimenkul Yatirim vs. IZDEMIR Enerji Elektrik
Performance |
| Timeline |
| Trend Gayrimenkul Yatirim |
| IZDEMIR Enerji Elektrik |
Trend Gayrimenkul and IZDEMIR Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trend Gayrimenkul and IZDEMIR Enerji
The main advantage of trading using opposite Trend Gayrimenkul and IZDEMIR Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trend Gayrimenkul position performs unexpectedly, IZDEMIR Enerji 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 IZDEMIR Enerji will offset losses from the drop in IZDEMIR Enerji'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 |
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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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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