Correlation Between Tekfen Holding and EIS Eczacibasi
Can any of the company-specific risk be diversified away by investing in both Tekfen Holding and EIS Eczacibasi 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 Tekfen Holding and EIS Eczacibasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tekfen Holding AS and EIS Eczacibasi Ilac, you can compare the effects of market volatilities on Tekfen Holding and EIS Eczacibasi 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 Tekfen Holding with a short position of EIS Eczacibasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tekfen Holding and EIS Eczacibasi.
Diversification Opportunities for Tekfen Holding and EIS Eczacibasi
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tekfen and EIS is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Tekfen Holding AS and EIS Eczacibasi Ilac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIS Eczacibasi Ilac and Tekfen Holding 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 Tekfen Holding AS are associated (or correlated) with EIS Eczacibasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIS Eczacibasi Ilac has no effect on the direction of Tekfen Holding i.e., Tekfen Holding and EIS Eczacibasi go up and down completely randomly.
Pair Corralation between Tekfen Holding and EIS Eczacibasi
Assuming the 90 days trading horizon Tekfen Holding AS is expected to generate 1.22 times more return on investment than EIS Eczacibasi. However, Tekfen Holding is 1.22 times more volatile than EIS Eczacibasi Ilac. It trades about -0.02 of its potential returns per unit of risk. EIS Eczacibasi Ilac is currently generating about -0.2 per unit of risk. If you would invest 6,450 in Tekfen Holding AS on November 4, 2024 and sell it today you would lose (75.00) from holding Tekfen Holding AS or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tekfen Holding AS vs. EIS Eczacibasi Ilac
Performance |
| Timeline |
| Tekfen Holding AS |
| EIS Eczacibasi Ilac |
Tekfen Holding and EIS Eczacibasi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tekfen Holding and EIS Eczacibasi
The main advantage of trading using opposite Tekfen Holding and EIS Eczacibasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tekfen Holding position performs unexpectedly, EIS Eczacibasi 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 EIS Eczacibasi will offset losses from the drop in EIS Eczacibasi's long position.| Tekfen Holding vs. Turkiye Sise ve | Tekfen Holding vs. Turkiye Petrol Rafinerileri | Tekfen Holding vs. Petkim Petrokimya Holding | Tekfen Holding vs. TAV Havalimanlari Holding |
| EIS Eczacibasi vs. Petkim Petrokimya Holding | EIS Eczacibasi vs. Tekfen Holding AS | EIS Eczacibasi vs. Alarko Holding AS | EIS Eczacibasi vs. Tofas Turk Otomobil |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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