Correlation Between Aselsan Elektronik and Zorlu Enerji
Can any of the company-specific risk be diversified away by investing in both Aselsan Elektronik and Zorlu Enerji 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 Aselsan Elektronik and Zorlu Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aselsan Elektronik Sanayi and Zorlu Enerji Elektrik, you can compare the effects of market volatilities on Aselsan Elektronik and Zorlu Enerji 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 Aselsan Elektronik with a short position of Zorlu Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aselsan Elektronik and Zorlu Enerji.
Diversification Opportunities for Aselsan Elektronik and Zorlu Enerji
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Aselsan and Zorlu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Aselsan Elektronik Sanayi and Zorlu Enerji Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zorlu Enerji Elektrik and Aselsan 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 Aselsan Elektronik Sanayi are associated (or correlated) with Zorlu Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zorlu Enerji Elektrik has no effect on the direction of Aselsan Elektronik i.e., Aselsan Elektronik and Zorlu Enerji go up and down completely randomly.
Pair Corralation between Aselsan Elektronik and Zorlu Enerji
Assuming the 90 days trading horizon Aselsan Elektronik is expected to generate 1.11 times less return on investment than Zorlu Enerji. In addition to that, Aselsan Elektronik is 1.26 times more volatile than Zorlu Enerji Elektrik. It trades about 0.04 of its total potential returns per unit of risk. Zorlu Enerji Elektrik is currently generating about 0.06 per unit of volatility. If you would invest 431.00 in Zorlu Enerji Elektrik on September 24, 2024 and sell it today you would earn a total of 6.00 from holding Zorlu Enerji Elektrik or generate 1.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Aselsan Elektronik Sanayi vs. Zorlu Enerji Elektrik
Performance |
Timeline |
Aselsan Elektronik Sanayi |
Zorlu Enerji Elektrik |
Aselsan Elektronik and Zorlu Enerji Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aselsan Elektronik and Zorlu Enerji
The main advantage of trading using opposite Aselsan Elektronik and Zorlu Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aselsan Elektronik position performs unexpectedly, Zorlu Enerji 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 Zorlu Enerji will offset losses from the drop in Zorlu Enerji's long position.Aselsan Elektronik vs. Eregli Demir ve | Aselsan Elektronik vs. Turkiye Petrol Rafinerileri | Aselsan Elektronik vs. Turkish Airlines | Aselsan Elektronik vs. Ford Otomotiv Sanayi |
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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