Correlation Between Datagate Bilgisayar and Penguen Gida

Can any of the company-specific risk be diversified away by investing in both Datagate Bilgisayar and Penguen Gida 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 Penguen Gida 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 Penguen Gida Sanayi, you can compare the effects of market volatilities on Datagate Bilgisayar and Penguen Gida 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 Penguen Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Datagate Bilgisayar and Penguen Gida.

Diversification Opportunities for Datagate Bilgisayar and Penguen Gida

0.31

Correlation Coefficient

Datagate Bilgisayar  Penguen Gida

Weak diversification

The 3 months correlation between Datagate and Penguen is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Datagate Bilgisayar Malzemeler and Penguen Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penguen Gida 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 Penguen Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penguen Gida Sanayi has no effect on the direction of Datagate Bilgisayar i.e., Datagate Bilgisayar and Penguen Gida go up and down completely randomly.

Pair Corralation between Datagate Bilgisayar and Penguen Gida

Assuming the 90 days trading horizon Datagate Bilgisayar Malzemeleri is expected to generate 1.9 times more return on investment than Penguen Gida. However, Datagate Bilgisayar is 1.9 times more volatile than Penguen Gida Sanayi. It trades about 0.17 of its potential returns per unit of risk. Penguen Gida Sanayi is currently generating about -0.2 per unit of risk. If you would invest  4,040  in Datagate Bilgisayar Malzemeleri on October 11, 2024 and sell it today you would earn a total of  422.00  from holding Datagate Bilgisayar Malzemeleri or generate 10.45% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Datagate Bilgisayar Malzemeler  vs.  Penguen Gida Sanayi

Datagate Bilgisayar

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Datagate Bilgisayar Malzemeleri are ranked lower than 9 (%) 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.

Penguen Gida Sanayi

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Penguen Gida demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Datagate Bilgisayar and Penguen Gida

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

The idea behind Datagate Bilgisayar Malzemeleri and Penguen Gida 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..