Correlation Between Eregli Demir and Haci Omer

Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Haci Omer 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 Eregli Demir and Haci Omer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eregli Demir ve and Haci Omer Sabanci, you can compare the effects of market volatilities on Eregli Demir and Haci Omer 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 Eregli Demir with a short position of Haci Omer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Haci Omer.

Diversification Opportunities for Eregli Demir and Haci Omer

0.71

Correlation Coefficient

Eregli Demir  Haci Omer

Poor diversification

The 3 months correlation between Eregli and Haci is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Haci Omer Sabanci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haci Omer Sabanci and Eregli Demir 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 Eregli Demir ve are associated (or correlated) with Haci Omer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haci Omer Sabanci has no effect on the direction of Eregli Demir i.e., Eregli Demir and Haci Omer go up and down completely randomly.

Pair Corralation between Eregli Demir and Haci Omer

Assuming the 90 days trading horizon Eregli Demir ve is expected to under-perform the Haci Omer. In addition to that, Eregli Demir is 1.27 times more volatile than Haci Omer Sabanci. It trades about 0.0 of its total potential returns per unit of risk. Haci Omer Sabanci is currently generating about 0.1 per unit of volatility. If you would invest  3,504  in Haci Omer Sabanci on October 1, 2024 and sell it today you would earn a total of  6,516  from holding Haci Omer Sabanci or generate 185.96% return on investment over 90 days.

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

Eregli Demir ve  vs.  Haci Omer Sabanci

Eregli Demir ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eregli Demir ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Eregli Demir is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Haci Omer Sabanci

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Haci Omer Sabanci are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Haci Omer may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Eregli Demir and Haci Omer

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

The idea behind Eregli Demir ve and Haci Omer Sabanci 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 Anywhere module to track or share privately all of your investments from the convenience of any device.