Correlation Between Dogu Aras and Ihlas Holding
Can any of the company-specific risk be diversified away by investing in both Dogu Aras and Ihlas Holding 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 Dogu Aras and Ihlas Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogu Aras Enerji and Ihlas Holding AS, you can compare the effects of market volatilities on Dogu Aras and Ihlas Holding 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 Dogu Aras with a short position of Ihlas Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogu Aras and Ihlas Holding.
Diversification Opportunities for Dogu Aras and Ihlas Holding
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dogu and Ihlas is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Dogu Aras Enerji and Ihlas Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Holding AS and Dogu Aras 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 Dogu Aras Enerji are associated (or correlated) with Ihlas Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Holding AS has no effect on the direction of Dogu Aras i.e., Dogu Aras and Ihlas Holding go up and down completely randomly.
Pair Corralation between Dogu Aras and Ihlas Holding
Assuming the 90 days trading horizon Dogu Aras Enerji is expected to generate 3.6 times more return on investment than Ihlas Holding. However, Dogu Aras is 3.6 times more volatile than Ihlas Holding AS. It trades about 0.03 of its potential returns per unit of risk. Ihlas Holding AS is currently generating about 0.08 per unit of risk. If you would invest 5,929 in Dogu Aras Enerji on September 23, 2024 and sell it today you would lose (699.00) from holding Dogu Aras Enerji or give up 11.79% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.2% |
Values | Daily Returns |
Dogu Aras Enerji vs. Ihlas Holding AS
Performance |
Timeline |
Dogu Aras Enerji |
Ihlas Holding AS |
Dogu Aras and Ihlas Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dogu Aras and Ihlas Holding
The main advantage of trading using opposite Dogu Aras and Ihlas Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogu Aras position performs unexpectedly, Ihlas Holding 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 Ihlas Holding will offset losses from the drop in Ihlas Holding's long position.Dogu Aras vs. Biotrend Cevre ve | Dogu Aras vs. Mercan Kimya Sanayi | Dogu Aras vs. Aydem Yenilenebilir Enerji | Dogu Aras vs. Galata Wind Enerji |
Ihlas Holding vs. Eregli Demir ve | Ihlas Holding vs. Turkiye Petrol Rafinerileri | Ihlas Holding vs. Turkish Airlines | Ihlas Holding vs. Ford Otomotiv Sanayi |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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