Correlation Between Dogus Otomotiv and Alkim Kagit
Can any of the company-specific risk be diversified away by investing in both Dogus Otomotiv and Alkim Kagit 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 Otomotiv and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogus Otomotiv Servis and Alkim Kagit Sanayi, you can compare the effects of market volatilities on Dogus Otomotiv and Alkim Kagit 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 Otomotiv with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Otomotiv and Alkim Kagit.
Diversification Opportunities for Dogus Otomotiv and Alkim Kagit
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Dogus and Alkim is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Otomotiv Servis and Alkim Kagit Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Kagit Sanayi and Dogus Otomotiv 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 Otomotiv Servis are associated (or correlated) with Alkim Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Kagit Sanayi has no effect on the direction of Dogus Otomotiv i.e., Dogus Otomotiv and Alkim Kagit go up and down completely randomly.
Pair Corralation between Dogus Otomotiv and Alkim Kagit
Assuming the 90 days trading horizon Dogus Otomotiv is expected to generate 4.06 times less return on investment than Alkim Kagit. But when comparing it to its historical volatility, Dogus Otomotiv Servis is 4.24 times less risky than Alkim Kagit. It trades about 0.04 of its potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 848.00 in Alkim Kagit Sanayi on September 25, 2024 and sell it today you would lose (5.00) from holding Alkim Kagit Sanayi or give up 0.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 99.8% |
Values | Daily Returns |
Dogus Otomotiv Servis vs. Alkim Kagit Sanayi
Performance |
Timeline |
Dogus Otomotiv Servis |
Alkim Kagit Sanayi |
Dogus Otomotiv and Alkim Kagit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dogus Otomotiv and Alkim Kagit
The main advantage of trading using opposite Dogus Otomotiv and Alkim Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Otomotiv position performs unexpectedly, Alkim Kagit 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 Alkim Kagit will offset losses from the drop in Alkim Kagit's long position.Dogus Otomotiv vs. Tofas Turk Otomobil | Dogus Otomotiv vs. Hektas Ticaret TAS | Dogus Otomotiv vs. Eregli Demir ve |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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