Correlation Between Trend Gayrimenkul and Trabzon Liman
Can any of the company-specific risk be diversified away by investing in both Trend Gayrimenkul and Trabzon Liman 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 Trabzon Liman 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 Trabzon Liman Isletmeciligi, you can compare the effects of market volatilities on Trend Gayrimenkul and Trabzon Liman 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 Trabzon Liman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trend Gayrimenkul and Trabzon Liman.
Diversification Opportunities for Trend Gayrimenkul and Trabzon Liman
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Trend and Trabzon is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Trend Gayrimenkul Yatirim and Trabzon Liman Isletmeciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzon Liman Isletm 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 Trabzon Liman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzon Liman Isletm has no effect on the direction of Trend Gayrimenkul i.e., Trend Gayrimenkul and Trabzon Liman go up and down completely randomly.
Pair Corralation between Trend Gayrimenkul and Trabzon Liman
Assuming the 90 days trading horizon Trend Gayrimenkul Yatirim is expected to generate 1.32 times more return on investment than Trabzon Liman. However, Trend Gayrimenkul is 1.32 times more volatile than Trabzon Liman Isletmeciligi. It trades about 0.15 of its potential returns per unit of risk. Trabzon Liman Isletmeciligi is currently generating about -0.01 per unit of risk. If you would invest 1,150 in Trend Gayrimenkul Yatirim on October 24, 2024 and sell it today you would earn a total of 78.00 from holding Trend Gayrimenkul Yatirim or generate 6.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Trend Gayrimenkul Yatirim vs. Trabzon Liman Isletmeciligi
Performance |
| Timeline |
| Trend Gayrimenkul Yatirim |
| Trabzon Liman Isletm |
Trend Gayrimenkul and Trabzon Liman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trend Gayrimenkul and Trabzon Liman
The main advantage of trading using opposite Trend Gayrimenkul and Trabzon Liman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trend Gayrimenkul position performs unexpectedly, Trabzon Liman 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 Trabzon Liman will offset losses from the drop in Trabzon Liman's long position.| Trend Gayrimenkul vs. Koza Anadolu Metal | Trend Gayrimenkul vs. Bms Birlesik Metal | Trend Gayrimenkul vs. MEGA METAL | Trend Gayrimenkul vs. Gentas Genel Metal |
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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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