Correlation Between Dogan Sirketler and Eczacibasi Yatirim

Can any of the company-specific risk be diversified away by investing in both Dogan Sirketler and Eczacibasi Yatirim 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 Dogan Sirketler and Eczacibasi Yatirim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Dogan Sirketler Grubu and Eczacibasi Yatirim Holding, you can compare the effects of market volatilities on Dogan Sirketler and Eczacibasi Yatirim 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 Dogan Sirketler with a short position of Eczacibasi Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogan Sirketler and Eczacibasi Yatirim.

Diversification Opportunities for Dogan Sirketler and Eczacibasi Yatirim

0.74

Correlation Coefficient

Dogan Sirketler  Eczacibasi Yatirim

Poor diversification

The 3 months correlation between Dogan and Eczacibasi is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Dogan Sirketler Grubu and Eczacibasi Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eczacibasi Yatirim and Dogan Sirketler 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 Dogan Sirketler Grubu are associated (or correlated) with Eczacibasi Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eczacibasi Yatirim has no effect on the direction of Dogan Sirketler i.e., Dogan Sirketler and Eczacibasi Yatirim go up and down completely randomly.

Pair Corralation between Dogan Sirketler and Eczacibasi Yatirim

Assuming the 90 days trading horizon Dogan Sirketler Grubu is expected to generate 1.17 times more return on investment than Eczacibasi Yatirim. However, Dogan Sirketler is 1.17 times more volatile than Eczacibasi Yatirim Holding. It trades about -0.01 of its potential returns per unit of risk. Eczacibasi Yatirim Holding is currently generating about -0.05 per unit of risk. If you would invest  1,484  in Dogan Sirketler Grubu on October 11, 2024 and sell it today you would lose (10.00) from holding Dogan Sirketler Grubu or give up 0.67% of portfolio value over 90 days.

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

Dogan Sirketler Grubu  vs.  Eczacibasi Yatirim Holding

Dogan Sirketler Grubu

Risk-Adjusted Performance

9 of 100

OK

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

Eczacibasi Yatirim

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eczacibasi Yatirim Holding are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Eczacibasi Yatirim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Dogan Sirketler and Eczacibasi Yatirim

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

The idea behind Dogan Sirketler Grubu and Eczacibasi Yatirim Holding 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.