Correlation Between Eczacibasi Yatirim and Pergamon Status

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

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

Diversification Opportunities for Eczacibasi Yatirim and Pergamon Status

-0.68

Correlation Coefficient

Eczacibasi Yatirim  Pergamon Status

Excellent diversification

The 3 months correlation between Eczacibasi and Pergamon is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Eczacibasi Yatirim Holding and Pergamon Status Dis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pergamon Status Dis and Eczacibasi Yatirim 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 Eczacibasi Yatirim Holding are associated (or correlated) with Pergamon Status. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pergamon Status Dis has no effect on the direction of Eczacibasi Yatirim i.e., Eczacibasi Yatirim and Pergamon Status go up and down completely randomly.

Pair Corralation between Eczacibasi Yatirim and Pergamon Status

Assuming the 90 days trading horizon Eczacibasi Yatirim is expected to generate 3.16 times less return on investment than Pergamon Status. But when comparing it to its historical volatility, Eczacibasi Yatirim Holding is 1.24 times less risky than Pergamon Status. It trades about 0.02 of its potential returns per unit of risk. Pergamon Status Dis is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,505  in Pergamon Status Dis on September 23, 2024 and sell it today you would earn a total of  4,940  from holding Pergamon Status Dis or generate 140.94% return on investment over 90 days.

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

Eczacibasi Yatirim Holding  vs.  Pergamon Status Dis

Eczacibasi Yatirim

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eczacibasi Yatirim Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Eczacibasi Yatirim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pergamon Status Dis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pergamon Status Dis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Pergamon Status is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Eczacibasi Yatirim and Pergamon Status

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

The idea behind Eczacibasi Yatirim Holding and Pergamon Status Dis 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.