Correlation Between E Data and Sekerbank TAS

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

Diversification Opportunities for E Data and Sekerbank TAS

0.42

Correlation Coefficient

E Data  Sekerbank TAS

Very weak diversification

The 3 months correlation between EDATA and Sekerbank is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS 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 Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of E Data i.e., E Data and Sekerbank TAS go up and down completely randomly.

Pair Corralation between E Data and Sekerbank TAS

Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to under-perform the Sekerbank TAS. But the stock apears to be less risky and, when comparing its historical volatility, E Data Teknoloji Pazarlama is 1.18 times less risky than Sekerbank TAS. The stock trades about -0.1 of its potential returns per unit of risk. The Sekerbank TAS is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  457.00  in Sekerbank TAS on September 14, 2024 and sell it today you would earn a total of  42.00  from holding Sekerbank TAS or generate 9.19% return on investment over 90 days.

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

E Data Teknoloji Pazarlama  vs.  Sekerbank TAS

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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Sekerbank TAS

Risk-Adjusted Performance

5 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sekerbank TAS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Sekerbank TAS may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with E Data and Sekerbank TAS

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

The idea behind E Data Teknoloji Pazarlama and Sekerbank TAS 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.