Correlation Between Vestel Elektronik and Trend Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Vestel Elektronik and Trend Gayrimenkul 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 Vestel Elektronik and Trend Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vestel Elektronik Sanayi and Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on Vestel Elektronik and Trend Gayrimenkul 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 Vestel Elektronik with a short position of Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vestel Elektronik and Trend Gayrimenkul.
Diversification Opportunities for Vestel Elektronik and Trend Gayrimenkul
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Vestel and Trend is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Vestel Elektronik Sanayi and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim and Vestel Elektronik 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 Vestel Elektronik Sanayi are associated (or correlated) with Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of Vestel Elektronik i.e., Vestel Elektronik and Trend Gayrimenkul go up and down completely randomly.
Pair Corralation between Vestel Elektronik and Trend Gayrimenkul
Assuming the 90 days trading horizon Vestel Elektronik Sanayi is expected to under-perform the Trend Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, Vestel Elektronik Sanayi is 1.1 times less risky than Trend Gayrimenkul. The stock trades about -0.07 of its potential returns per unit of risk. The Trend Gayrimenkul Yatirim is currently generating about 0.15 of returns per unit of risk over similar time horizon. 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vestel Elektronik Sanayi vs. Trend Gayrimenkul Yatirim
Performance |
| Timeline |
| Vestel Elektronik Sanayi |
| Trend Gayrimenkul Yatirim |
Vestel Elektronik and Trend Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vestel Elektronik and Trend Gayrimenkul
The main advantage of trading using opposite Vestel Elektronik and Trend Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vestel Elektronik position performs unexpectedly, Trend Gayrimenkul 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 Trend Gayrimenkul will offset losses from the drop in Trend Gayrimenkul's long position.| Vestel Elektronik vs. Arcelik AS | Vestel Elektronik vs. Vestel Beyaz Esya | Vestel Elektronik vs. Eregli Demir ve | Vestel Elektronik vs. Turkiye Sise ve |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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