Correlation Between Ihlas Holding and Pergamon Status
Can any of the company-specific risk be diversified away by investing in both Ihlas Holding and Pergamon Status 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 Ihlas Holding and Pergamon Status into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ihlas Holding AS and Pergamon Status Dis, you can compare the effects of market volatilities on Ihlas Holding and Pergamon Status 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 Ihlas Holding with a short position of Pergamon Status. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Holding and Pergamon Status.
Diversification Opportunities for Ihlas Holding and Pergamon Status
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ihlas and Pergamon is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Holding AS and Pergamon Status Dis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pergamon Status Dis and Ihlas Holding 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 Ihlas Holding AS are associated (or correlated) with Pergamon Status. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pergamon Status Dis has no effect on the direction of Ihlas Holding i.e., Ihlas Holding and Pergamon Status go up and down completely randomly.
Pair Corralation between Ihlas Holding and Pergamon Status
Assuming the 90 days trading horizon Ihlas Holding AS is expected to generate 1.45 times more return on investment than Pergamon Status. However, Ihlas Holding is 1.45 times more volatile than Pergamon Status Dis. It trades about 0.32 of its potential returns per unit of risk. Pergamon Status Dis is currently generating about -0.01 per unit of risk. If you would invest 112.00 in Ihlas Holding AS on September 23, 2024 and sell it today you would earn a total of 230.00 from holding Ihlas Holding AS or generate 205.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Ihlas Holding AS vs. Pergamon Status Dis
Performance |
Timeline |
Ihlas Holding AS |
Pergamon Status Dis |
Ihlas Holding and Pergamon Status Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ihlas Holding and Pergamon Status
The main advantage of trading using opposite Ihlas Holding and Pergamon Status positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ihlas Holding position performs unexpectedly, Pergamon Status 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 Pergamon Status will offset losses from the drop in Pergamon Status' long position.Ihlas Holding vs. Eregli Demir ve | Ihlas Holding vs. Turkiye Petrol Rafinerileri | Ihlas Holding vs. Turkish Airlines | Ihlas Holding vs. Ford Otomotiv Sanayi |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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