Correlation Between Euro Menkul and Trend Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both Euro Menkul and Trend Gayrimenkul 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 Euro Menkul and Trend Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Euro Menkul Kiymet and Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on Euro Menkul and Trend Gayrimenkul 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 Euro Menkul with a short position of Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Menkul and Trend Gayrimenkul.

Diversification Opportunities for Euro Menkul and Trend Gayrimenkul

-0.47

Correlation Coefficient

Euro Menkul  Trend Gayrimenkul

Very good diversification

The 3 months correlation between Euro and Trend is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Euro Menkul Kiymet and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim and Euro Menkul 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 Euro Menkul Kiymet are associated (or correlated) with Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of Euro Menkul i.e., Euro Menkul and Trend Gayrimenkul go up and down completely randomly.

Pair Corralation between Euro Menkul and Trend Gayrimenkul

Assuming the 90 days trading horizon Euro Menkul Kiymet is expected to under-perform the Trend Gayrimenkul. In addition to that, Euro Menkul is 1.0 times more volatile than Trend Gayrimenkul Yatirim. It trades about -0.04 of its total potential returns per unit of risk. Trend Gayrimenkul Yatirim is currently generating about 0.13 per unit of volatility. If you would invest  1,150  in Trend Gayrimenkul Yatirim on December 21, 2024 and sell it today you would earn a total of  409.00  from holding Trend Gayrimenkul Yatirim or generate 35.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Euro Menkul Kiymet  vs.  Trend Gayrimenkul Yatirim

Euro Menkul Kiymet

Risk-Adjusted Performance

Very Weak

Over the last 90 days Euro Menkul Kiymet has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Trend Gayrimenkul Yatirim

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trend Gayrimenkul Yatirim are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Trend Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Euro Menkul and Trend Gayrimenkul

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

The idea behind Euro Menkul Kiymet and Trend Gayrimenkul Yatirim 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.

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 Transaction History module to view history of all your transactions and understand their impact on performance.