Correlation Between Trabzon Liman and Ege Endustri
Can any of the company-specific risk be diversified away by investing in both Trabzon Liman and Ege Endustri 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 Trabzon Liman and Ege Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trabzon Liman Isletmeciligi and Ege Endustri ve, you can compare the effects of market volatilities on Trabzon Liman and Ege Endustri 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 Trabzon Liman with a short position of Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trabzon Liman and Ege Endustri.
Diversification Opportunities for Trabzon Liman and Ege Endustri
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Trabzon and Ege is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Trabzon Liman Isletmeciligi and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve and Trabzon Liman 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 Trabzon Liman Isletmeciligi are associated (or correlated) with Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Trabzon Liman i.e., Trabzon Liman and Ege Endustri go up and down completely randomly.
Pair Corralation between Trabzon Liman and Ege Endustri
Assuming the 90 days trading horizon Trabzon Liman Isletmeciligi is expected to under-perform the Ege Endustri. But the stock apears to be less risky and, when comparing its historical volatility, Trabzon Liman Isletmeciligi is 1.19 times less risky than Ege Endustri. The stock trades about -0.21 of its potential returns per unit of risk. The Ege Endustri ve is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 1,015,000 in Ege Endustri ve on November 4, 2024 and sell it today you would lose (68,000) from holding Ege Endustri ve or give up 6.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trabzon Liman Isletmeciligi vs. Ege Endustri ve
Performance |
| Timeline |
| Trabzon Liman Isletm |
| Ege Endustri ve |
Trabzon Liman and Ege Endustri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trabzon Liman and Ege Endustri
The main advantage of trading using opposite Trabzon Liman and Ege Endustri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trabzon Liman position performs unexpectedly, Ege Endustri 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 Ege Endustri will offset losses from the drop in Ege Endustri's long position.| Trabzon Liman vs. Bms Birlesik Metal | Trabzon Liman vs. Trabzonspor Sportif Yatirim | Trabzon Liman vs. Creditwest Faktoring AS | Trabzon Liman vs. Akbank TAS |
| Ege Endustri vs. Ford Otomotiv Sanayi | Ege Endustri vs. Tofas Turk Otomobil | Ege Endustri vs. Hektas Ticaret TAS | Ege Endustri vs. Eregli Demir ve |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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