Correlation Between Escort Teknoloji and E Data

Can any of the company-specific risk be diversified away by investing in both Escort Teknoloji and E Data 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 Escort Teknoloji and E Data into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Escort Teknoloji Yatirim and E Data Teknoloji Pazarlama, you can compare the effects of market volatilities on Escort Teknoloji and E Data 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 Escort Teknoloji with a short position of E Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Escort Teknoloji and E Data.

Diversification Opportunities for Escort Teknoloji and E Data

0.33

Correlation Coefficient

Escort Teknoloji  E Data

Weak diversification

The 3 months correlation between Escort and EDATA is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Escort Teknoloji Yatirim and E Data Teknoloji Pazarlama in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E Data Teknoloji and Escort Teknoloji 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 Escort Teknoloji Yatirim are associated (or correlated) with E Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E Data Teknoloji has no effect on the direction of Escort Teknoloji i.e., Escort Teknoloji and E Data go up and down completely randomly.

Pair Corralation between Escort Teknoloji and E Data

Assuming the 90 days trading horizon Escort Teknoloji Yatirim is expected to generate 1.41 times more return on investment than E Data. However, Escort Teknoloji is 1.41 times more volatile than E Data Teknoloji Pazarlama. It trades about 0.04 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.09 per unit of risk. If you would invest  5,375  in Escort Teknoloji Yatirim on September 15, 2024 and sell it today you would earn a total of  245.00  from holding Escort Teknoloji Yatirim or generate 4.56% return on investment over 90 days.

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

Escort Teknoloji Yatirim  vs.  E Data Teknoloji Pazarlama

Escort Teknoloji Yatirim

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Escort Teknoloji Yatirim are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Escort Teknoloji may actually be approaching a critical reversion point that can send shares even higher in January 2025.

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 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.

Pair Trading with Escort Teknoloji and E Data

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

The idea behind Escort Teknoloji Yatirim and E Data Teknoloji Pazarlama 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 Transaction History module to view history of all your transactions and understand their impact on performance.