Correlation Between E Data and Makina Takim

Can any of the company-specific risk be diversified away by investing in both E Data and Makina Takim 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 Makina Takim 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 Makina Takim Endustrisi, you can compare the effects of market volatilities on E Data and Makina Takim 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 Makina Takim. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Data and Makina Takim.

Diversification Opportunities for E Data and Makina Takim

0.06

Correlation Coefficient

E Data  Makina Takim

Significant diversification

The 3 months correlation between EDATA and Makina is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and Makina Takim Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makina Takim Endustrisi 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 Makina Takim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makina Takim Endustrisi has no effect on the direction of E Data i.e., E Data and Makina Takim go up and down completely randomly.

Pair Corralation between E Data and Makina Takim

Assuming the 90 days trading horizon E Data is expected to generate 1.16 times less return on investment than Makina Takim. In addition to that, E Data is 1.09 times more volatile than Makina Takim Endustrisi. It trades about 0.04 of its total potential returns per unit of risk. Makina Takim Endustrisi is currently generating about 0.05 per unit of volatility. If you would invest  479.00  in Makina Takim Endustrisi on October 3, 2024 and sell it today you would earn a total of  230.00  from holding Makina Takim Endustrisi or generate 48.02% return on investment over 90 days.

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

E Data Teknoloji Pazarlama  vs.  Makina Takim Endustrisi

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.

Makina Takim Endustrisi

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Makina Takim Endustrisi are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Makina Takim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with E Data and Makina Takim

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

The idea behind E Data Teknoloji Pazarlama and Makina Takim Endustrisi 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.