Correlation Between Emlak Konut and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Emlak Konut and Dow Jones 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 Emlak Konut and Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emlak Konut Gayrimenkul and Dow Jones Industrial, you can compare the effects of market volatilities on Emlak Konut and Dow Jones 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 Emlak Konut with a short position of Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emlak Konut and Dow Jones.
Diversification Opportunities for Emlak Konut and Dow Jones
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emlak and Dow is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Emlak Konut Gayrimenkul and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial and Emlak Konut 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 Emlak Konut Gayrimenkul are associated (or correlated) with Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Emlak Konut i.e., Emlak Konut and Dow Jones go up and down completely randomly.
Pair Corralation between Emlak Konut and Dow Jones
Assuming the 90 days trading horizon Emlak Konut Gayrimenkul is expected to generate 4.65 times more return on investment than Dow Jones. However, Emlak Konut is 4.65 times more volatile than Dow Jones Industrial. It trades about 0.04 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 919.00 in Emlak Konut Gayrimenkul on September 23, 2024 and sell it today you would earn a total of 381.00 from holding Emlak Konut Gayrimenkul or generate 41.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Emlak Konut Gayrimenkul vs. Dow Jones Industrial
Performance |
Timeline |
Emlak Konut and Dow Jones Volatility Contrast
Predicted Return Density |
Returns |
Emlak Konut Gayrimenkul
Pair trading matchups for Emlak Konut
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Emlak Konut and Dow Jones
The main advantage of trading using opposite Emlak Konut and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emlak Konut position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.Emlak Konut vs. Yapi ve Kredi | Emlak Konut vs. Petkim Petrokimya Holding | Emlak Konut vs. Turkiye Is Bankasi | Emlak Konut vs. Kardemir Karabuk Demir |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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