Correlation Between Tumosan and Nigbas Nigde
Can any of the company-specific risk be diversified away by investing in both Tumosan and Nigbas Nigde 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 Tumosan and Nigbas Nigde into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tumosan Motor ve and Nigbas Nigde Beton, you can compare the effects of market volatilities on Tumosan and Nigbas Nigde 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 Tumosan with a short position of Nigbas Nigde. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tumosan and Nigbas Nigde.
Diversification Opportunities for Tumosan and Nigbas Nigde
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tumosan and Nigbas is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Tumosan Motor ve and Nigbas Nigde Beton in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nigbas Nigde Beton and Tumosan 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 Tumosan Motor ve are associated (or correlated) with Nigbas Nigde. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nigbas Nigde Beton has no effect on the direction of Tumosan i.e., Tumosan and Nigbas Nigde go up and down completely randomly.
Pair Corralation between Tumosan and Nigbas Nigde
Assuming the 90 days trading horizon Tumosan Motor ve is expected to generate 1.04 times more return on investment than Nigbas Nigde. However, Tumosan is 1.04 times more volatile than Nigbas Nigde Beton. It trades about 0.04 of its potential returns per unit of risk. Nigbas Nigde Beton is currently generating about 0.02 per unit of risk. If you would invest 9,500 in Tumosan Motor ve on September 3, 2024 and sell it today you would earn a total of 2,100 from holding Tumosan Motor ve or generate 22.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tumosan Motor ve vs. Nigbas Nigde Beton
Performance |
| Timeline |
| Tumosan Motor ve |
| Nigbas Nigde Beton |
Tumosan and Nigbas Nigde Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tumosan and Nigbas Nigde
The main advantage of trading using opposite Tumosan and Nigbas Nigde positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tumosan position performs unexpectedly, Nigbas Nigde 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 Nigbas Nigde will offset losses from the drop in Nigbas Nigde's long position.| Tumosan vs. Politeknik Metal Sanayi | Tumosan vs. Akbank TAS | Tumosan vs. Turkiye Kalkinma Bankasi | Tumosan vs. Koza Anadolu Metal |
| Nigbas Nigde vs. MEGA METAL | Nigbas Nigde vs. Gentas Genel Metal | Nigbas Nigde vs. Politeknik Metal Sanayi | Nigbas Nigde vs. Mackolik Internet Hizmetleri |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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