Correlation Between Yesil Yatirim and Ekiz Kimya
Can any of the company-specific risk be diversified away by investing in both Yesil Yatirim and Ekiz Kimya 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 Yesil Yatirim and Ekiz Kimya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Yesil Yatirim Holding and Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Yesil Yatirim and Ekiz Kimya 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 Yesil Yatirim with a short position of Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yesil Yatirim and Ekiz Kimya.
Diversification Opportunities for Yesil Yatirim and Ekiz Kimya
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yesil and Ekiz is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Yesil Yatirim Holding and Ekiz Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekiz Kimya Sanayi and Yesil Yatirim 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 Yesil Yatirim Holding are associated (or correlated) with Ekiz Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekiz Kimya Sanayi has no effect on the direction of Yesil Yatirim i.e., Yesil Yatirim and Ekiz Kimya go up and down completely randomly.
Pair Corralation between Yesil Yatirim and Ekiz Kimya
Assuming the 90 days trading horizon Yesil Yatirim Holding is expected to generate 1.84 times more return on investment than Ekiz Kimya. However, Yesil Yatirim is 1.84 times more volatile than Ekiz Kimya Sanayi. It trades about 0.59 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.05 per unit of risk. If you would invest 128.00 in Yesil Yatirim Holding on September 5, 2024 and sell it today you would earn a total of 103.00 from holding Yesil Yatirim Holding or generate 80.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yesil Yatirim Holding vs. Ekiz Kimya Sanayi
Performance |
| Timeline |
| Yesil Yatirim Holding |
| Ekiz Kimya Sanayi |
Yesil Yatirim and Ekiz Kimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yesil Yatirim and Ekiz Kimya
The main advantage of trading using opposite Yesil Yatirim and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yesil Yatirim position performs unexpectedly, Ekiz Kimya 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 Ekiz Kimya will offset losses from the drop in Ekiz Kimya's long position.| Yesil Yatirim vs. Gentas Genel Metal | Yesil Yatirim vs. Galatasaray Sportif Sinai | Yesil Yatirim vs. Cuhadaroglu Metal Sanayi | Yesil Yatirim vs. Koza Anadolu Metal |
| Ekiz Kimya vs. Politeknik Metal Sanayi | Ekiz Kimya vs. Creditwest Faktoring AS | Ekiz Kimya vs. Turkiye Kalkinma Bankasi | Ekiz Kimya vs. MEGA METAL |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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