Correlation Between Zorlu Enerji and Menderes Tekstil
Can any of the company-specific risk be diversified away by investing in both Zorlu Enerji and Menderes Tekstil 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 Zorlu Enerji and Menderes Tekstil into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zorlu Enerji Elektrik and Menderes Tekstil Sanayi, you can compare the effects of market volatilities on Zorlu Enerji and Menderes Tekstil 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 Zorlu Enerji with a short position of Menderes Tekstil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zorlu Enerji and Menderes Tekstil.
Diversification Opportunities for Zorlu Enerji and Menderes Tekstil
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zorlu and Menderes is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Zorlu Enerji Elektrik and Menderes Tekstil Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Menderes Tekstil Sanayi and Zorlu Enerji 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 Zorlu Enerji Elektrik are associated (or correlated) with Menderes Tekstil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Menderes Tekstil Sanayi has no effect on the direction of Zorlu Enerji i.e., Zorlu Enerji and Menderes Tekstil go up and down completely randomly.
Pair Corralation between Zorlu Enerji and Menderes Tekstil
Assuming the 90 days trading horizon Zorlu Enerji Elektrik is expected to under-perform the Menderes Tekstil. But the stock apears to be less risky and, when comparing its historical volatility, Zorlu Enerji Elektrik is 1.29 times less risky than Menderes Tekstil. The stock trades about -0.1 of its potential returns per unit of risk. The Menderes Tekstil Sanayi is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,397 in Menderes Tekstil Sanayi on August 30, 2024 and sell it today you would lose (307.00) from holding Menderes Tekstil Sanayi or give up 21.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zorlu Enerji Elektrik vs. Menderes Tekstil Sanayi
Performance |
| Timeline |
| Zorlu Enerji Elektrik |
| Menderes Tekstil Sanayi |
Zorlu Enerji and Menderes Tekstil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zorlu Enerji and Menderes Tekstil
The main advantage of trading using opposite Zorlu Enerji and Menderes Tekstil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zorlu Enerji position performs unexpectedly, Menderes Tekstil 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 Menderes Tekstil will offset losses from the drop in Menderes Tekstil's long position.| Zorlu Enerji vs. Eregli Demir ve | Zorlu Enerji vs. Turkiye Sise ve | Zorlu Enerji vs. Tofas Turk Otomobil | Zorlu Enerji vs. Ford Otomotiv Sanayi |
| Menderes Tekstil vs. BIM Birlesik Magazalar | Menderes Tekstil vs. Pegasus Hava Tasimaciligi | Menderes Tekstil vs. Turkiye Petrol Rafinerileri | Menderes Tekstil vs. Turkiye Sise 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |