Correlation Between E Data and Eminis Ambalaj

Can any of the company-specific risk be diversified away by investing in both E Data and Eminis Ambalaj 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 E Data and Eminis Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between E Data Teknoloji Pazarlama and Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on E Data and Eminis Ambalaj 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 E Data with a short position of Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Data and Eminis Ambalaj.

Diversification Opportunities for E Data and Eminis Ambalaj

0.02

Correlation Coefficient

E Data  Eminis Ambalaj

Significant diversification

The 3 months correlation between EDATA and Eminis is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj Sanayi and E Data 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 E Data Teknoloji Pazarlama are associated (or correlated) with Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of E Data i.e., E Data and Eminis Ambalaj go up and down completely randomly.

Pair Corralation between E Data and Eminis Ambalaj

Assuming the 90 days trading horizon E Data is expected to generate 1.13 times less return on investment than Eminis Ambalaj. In addition to that, E Data is 1.88 times more volatile than Eminis Ambalaj Sanayi. It trades about 0.04 of its total potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about 0.09 per unit of volatility. If you would invest  4,350  in Eminis Ambalaj Sanayi on October 4, 2024 and sell it today you would earn a total of  21,700  from holding Eminis Ambalaj Sanayi or generate 498.85% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	99.19%
Values	Daily Returns

E Data Teknoloji Pazarlama  vs.  Eminis Ambalaj Sanayi

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days E Data Teknoloji Pazarlama 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 February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Eminis Ambalaj Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eminis Ambalaj Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with E Data and Eminis Ambalaj

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

The idea behind E Data Teknoloji Pazarlama and Eminis Ambalaj Sanayi 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.