Correlation Between Global Menkul and Ihlas Holding
Can any of the company-specific risk be diversified away by investing in both Global Menkul and Ihlas Holding 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 Ihlas Holding 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 Ihlas Holding AS, you can compare the effects of market volatilities on Global Menkul and Ihlas Holding 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 Ihlas Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Menkul and Ihlas Holding.
Diversification Opportunities for Global Menkul and Ihlas Holding
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Global and Ihlas is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Global Menkul Degerler and Ihlas Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Holding AS 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 Ihlas Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Holding AS has no effect on the direction of Global Menkul i.e., Global Menkul and Ihlas Holding go up and down completely randomly.
Pair Corralation between Global Menkul and Ihlas Holding
Assuming the 90 days trading horizon Global Menkul Degerler is expected to generate 2.37 times more return on investment than Ihlas Holding. However, Global Menkul is 2.37 times more volatile than Ihlas Holding AS. It trades about 0.05 of its potential returns per unit of risk. Ihlas Holding AS is currently generating about 0.08 per unit of risk. If you would invest 473.00 in Global Menkul Degerler on September 23, 2024 and sell it today you would earn a total of 803.00 from holding Global Menkul Degerler or generate 169.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Global Menkul Degerler vs. Ihlas Holding AS
Performance |
Timeline |
Global Menkul Degerler |
Ihlas Holding AS |
Global Menkul and Ihlas Holding Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Global Menkul and Ihlas Holding
The main advantage of trading using opposite Global Menkul and Ihlas Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Menkul position performs unexpectedly, Ihlas Holding 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 Ihlas Holding will offset losses from the drop in Ihlas Holding's long position.Global Menkul vs. Aksa Akrilik Kimya | Global Menkul vs. Tofas Turk Otomobil | Global Menkul vs. AK Sigorta AS | Global Menkul vs. Is Yatirim Menkul |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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