Correlation Between Eminis Ambalaj and Kent Gida

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

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

Diversification Opportunities for Eminis Ambalaj and Kent Gida

-0.03

Correlation Coefficient

Eminis Ambalaj  Kent Gida

Good diversification

The 3 months correlation between Eminis and Kent is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Eminis Ambalaj Sanayi and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri and Eminis Ambalaj 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 Eminis Ambalaj Sanayi are associated (or correlated) with Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Eminis Ambalaj i.e., Eminis Ambalaj and Kent Gida go up and down completely randomly.

Pair Corralation between Eminis Ambalaj and Kent Gida

Assuming the 90 days trading horizon Eminis Ambalaj Sanayi is expected to under-perform the Kent Gida. In addition to that, Eminis Ambalaj is 1.11 times more volatile than Kent Gida Maddeleri. It trades about -0.04 of its total potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.08 per unit of volatility. If you would invest  81,000  in Kent Gida Maddeleri on October 25, 2024 and sell it today you would earn a total of  11,750  from holding Kent Gida Maddeleri or generate 14.51% return on investment over 90 days.

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

Eminis Ambalaj Sanayi  vs.  Kent Gida Maddeleri

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.

Kent Gida Maddeleri

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kent Gida Maddeleri are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Kent Gida unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eminis Ambalaj and Kent Gida

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

The idea behind Eminis Ambalaj Sanayi and Kent Gida Maddeleri 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.