Correlation Between Datagate Bilgisayar and Ekiz Kimya

Can any of the company-specific risk be diversified away by investing in both Datagate Bilgisayar 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 Datagate Bilgisayar and Ekiz Kimya into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Datagate Bilgisayar Malzemeleri and Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Datagate Bilgisayar 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 Datagate Bilgisayar with a short position of Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagate Bilgisayar and Ekiz Kimya.

Diversification Opportunities for Datagate Bilgisayar and Ekiz Kimya

-0.72

Correlation Coefficient

Datagate Bilgisayar  Ekiz Kimya

Pay attention - limited upside

The 3 months correlation between Datagate and Ekiz is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Datagate Bilgisayar Malzemeler 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 Datagate Bilgisayar 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 Datagate Bilgisayar Malzemeleri 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 Datagate Bilgisayar i.e., Datagate Bilgisayar and Ekiz Kimya go up and down completely randomly.

Pair Corralation between Datagate Bilgisayar and Ekiz Kimya

Assuming the 90 days trading horizon Datagate Bilgisayar Malzemeleri is expected to generate 1.49 times more return on investment than Ekiz Kimya. However, Datagate Bilgisayar is 1.49 times more volatile than Ekiz Kimya Sanayi. It trades about 0.19 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.15 per unit of risk. If you would invest  4,168  in Datagate Bilgisayar Malzemeleri on October 26, 2024 and sell it today you would earn a total of  962.00  from holding Datagate Bilgisayar Malzemeleri or generate 23.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	97.73%
Values	Daily Returns

Datagate Bilgisayar Malzemeler  vs.  Ekiz Kimya Sanayi

Datagate Bilgisayar

Risk-Adjusted Performance

12 of 100

Good

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

Ekiz Kimya Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ekiz Kimya Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Datagate Bilgisayar and Ekiz Kimya

The main advantage of trading using opposite Datagate Bilgisayar and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Datagate Bilgisayar 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.

The idea behind Datagate Bilgisayar Malzemeleri and Ekiz Kimya Sanayi 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.