Correlation Between IZDEMIR Enerji and E Data

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

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

Diversification Opportunities for IZDEMIR Enerji and E Data

-0.35

Correlation Coefficient

IZDEMIR Enerji  E Data

Very good diversification

The 3 months correlation between IZDEMIR and EDATA is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding IZDEMIR Enerji Elektrik 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 IZDEMIR Enerji 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 IZDEMIR Enerji Elektrik 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 IZDEMIR Enerji i.e., IZDEMIR Enerji and E Data go up and down completely randomly.

Pair Corralation between IZDEMIR Enerji and E Data

Assuming the 90 days trading horizon IZDEMIR Enerji Elektrik is expected to generate 1.04 times more return on investment than E Data. However, IZDEMIR Enerji is 1.04 times more volatile than E Data Teknoloji Pazarlama. It trades about 0.01 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.08 per unit of risk. If you would invest  475.00  in IZDEMIR Enerji Elektrik on December 25, 2024 and sell it today you would lose (7.00) from holding IZDEMIR Enerji Elektrik or give up 1.47% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

IZDEMIR Enerji Elektrik  vs.  E Data Teknoloji Pazarlama

IZDEMIR Enerji Elektrik

Risk-Adjusted Performance

Weak

Over the last 90 days IZDEMIR Enerji Elektrik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, IZDEMIR Enerji is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

E Data Teknoloji

Risk-Adjusted Performance

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 inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with IZDEMIR Enerji and E Data

The main advantage of trading using opposite IZDEMIR Enerji and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IZDEMIR Enerji 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 IZDEMIR Enerji Elektrik 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.