Correlation Between Cemtas Celik and E Data

Can any of the company-specific risk be diversified away by investing in both Cemtas Celik and E Data 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 Cemtas Celik and E Data into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cemtas Celik Makina and E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on Cemtas Celik and E Data 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 Cemtas Celik with a short position of E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtas Celik and E Data.

Diversification Opportunities for Cemtas Celik and E Data

-0.11

Correlation Coefficient

Cemtas Celik  E Data

Good diversification

The 3 months correlation between Cemtas and EDATA is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji and Cemtas Celik 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 Cemtas Celik Makina are associated (or correlated) with E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Cemtas Celik i.e., Cemtas Celik and E Data go up and down completely randomly.

Pair Corralation between Cemtas Celik and E Data

Assuming the 90 days trading horizon Cemtas Celik Makina is expected to generate 0.64 times more return on investment than E Data. However, Cemtas Celik Makina is 1.57 times less risky than E Data. It trades about 0.04 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.24 per unit of risk. If you would invest  933.00  in Cemtas Celik Makina on October 10, 2024 and sell it today you would earn a total of  9.00  from holding Cemtas Celik Makina or generate 0.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Cemtas Celik Makina  vs.  E Data Teknoloji Pazarlama

Cemtas Celik Makina

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cemtas Celik Makina are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Cemtas Celik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E Data Teknoloji Pazarlama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, E Data is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Cemtas Celik and E Data

The main advantage of trading using opposite Cemtas Celik and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtas Celik position performs unexpectedly, E Data 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 E Data will offset losses from the drop in E Data's long position.

The idea behind Cemtas Celik Makina and E Data Teknoloji Pazarlama pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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.