Correlation Between Dogus Gayrimenkul and CEO Event

Can any of the company-specific risk be diversified away by investing in both Dogus Gayrimenkul and CEO Event 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 Dogus Gayrimenkul and CEO Event into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dogus Gayrimenkul Yatirim and CEO Event Medya, you can compare the effects of market volatilities on Dogus Gayrimenkul and CEO Event 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 Dogus Gayrimenkul with a short position of CEO Event. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Gayrimenkul and CEO Event.

Diversification Opportunities for Dogus Gayrimenkul and CEO Event

-0.56

Correlation Coefficient

Dogus Gayrimenkul  CEO Event

Excellent diversification

The 3 months correlation between Dogus and CEO is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Gayrimenkul Yatirim and CEO Event Medya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Event Medya and Dogus Gayrimenkul 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 Dogus Gayrimenkul Yatirim are associated (or correlated) with CEO Event. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Event Medya has no effect on the direction of Dogus Gayrimenkul i.e., Dogus Gayrimenkul and CEO Event go up and down completely randomly.

Pair Corralation between Dogus Gayrimenkul and CEO Event

Assuming the 90 days trading horizon Dogus Gayrimenkul Yatirim is expected to under-perform the CEO Event. But the stock apears to be less risky and, when comparing its historical volatility, Dogus Gayrimenkul Yatirim is 1.71 times less risky than CEO Event. The stock trades about -0.12 of its potential returns per unit of risk. The CEO Event Medya is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  2,780  in CEO Event Medya on December 29, 2024 and sell it today you would earn a total of  952.00  from holding CEO Event Medya or generate 34.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Dogus Gayrimenkul Yatirim  vs.  CEO Event Medya

Dogus Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Dogus Gayrimenkul Yatirim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

CEO Event Medya

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CEO Event Medya are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, CEO Event demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Dogus Gayrimenkul and CEO Event

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

The idea behind Dogus Gayrimenkul Yatirim and CEO Event Medya 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.