Correlation Between Global Menkul and E Data

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

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

Diversification Opportunities for Global Menkul and E Data

0.32

Correlation Coefficient

Global Menkul  E Data

Weak diversification

The 3 months correlation between Global and EDATA is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Global Menkul Degerler 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 Global 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 Global Menkul Degerler 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 Global Menkul i.e., Global Menkul and E Data go up and down completely randomly.

Pair Corralation between Global Menkul and E Data

Assuming the 90 days trading horizon Global Menkul Degerler is expected to under-perform the E Data. In addition to that, Global Menkul is 1.28 times more volatile than E Data Teknoloji Pazarlama. It trades about -0.72 of its total potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.32 per unit of volatility. If you would invest  1,469  in E Data Teknoloji Pazarlama on October 8, 2024 and sell it today you would lose (186.00) from holding E Data Teknoloji Pazarlama or give up 12.66% of portfolio value over 90 days.

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

Global Menkul Degerler  vs.  E Data Teknoloji Pazarlama

Global Menkul Degerler

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Global Menkul Degerler are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Global Menkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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 Global Menkul and E Data

The main advantage of trading using opposite Global Menkul and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Menkul 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 Global Menkul Degerler 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..