Correlation Between EIS Eczacibasi and Alkim Kagit
Can any of the company-specific risk be diversified away by investing in both EIS Eczacibasi 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 EIS Eczacibasi and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EIS Eczacibasi Ilac and Alkim Kagit Sanayi, you can compare the effects of market volatilities on EIS Eczacibasi 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 EIS Eczacibasi with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of EIS Eczacibasi and Alkim Kagit.
Diversification Opportunities for EIS Eczacibasi and Alkim Kagit
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EIS and Alkim is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding EIS Eczacibasi Ilac 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 EIS Eczacibasi 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 EIS Eczacibasi Ilac 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 EIS Eczacibasi i.e., EIS Eczacibasi and Alkim Kagit go up and down completely randomly.
Pair Corralation between EIS Eczacibasi and Alkim Kagit
Assuming the 90 days trading horizon EIS Eczacibasi is expected to generate 3.85 times less return on investment than Alkim Kagit. But when comparing it to its historical volatility, EIS Eczacibasi Ilac is 2.66 times less risky than Alkim Kagit. It trades about 0.24 of its potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 655.00 in Alkim Kagit Sanayi on September 24, 2024 and sell it today you would earn a total of 188.00 from holding Alkim Kagit Sanayi or generate 28.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
EIS Eczacibasi Ilac vs. Alkim Kagit Sanayi
Performance |
Timeline |
EIS Eczacibasi Ilac |
Alkim Kagit Sanayi |
EIS Eczacibasi and Alkim Kagit Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EIS Eczacibasi and Alkim Kagit
The main advantage of trading using opposite EIS Eczacibasi and Alkim Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EIS Eczacibasi 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.EIS Eczacibasi vs. Trabzon Liman Isletmeciligi | EIS Eczacibasi vs. Bayrak EBT Taban | EIS Eczacibasi vs. Alkim Kagit Sanayi | EIS Eczacibasi vs. Federal Mogul Izmit |
Alkim Kagit vs. Ege Endustri ve | Alkim Kagit vs. Bosch Fren Sistemleri | Alkim Kagit vs. Dogus Otomotiv Servis | Alkim Kagit vs. Nuh Cimento Sanayi |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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