Correlation Between Kent Gida and Yunsa Yunlu
Can any of the company-specific risk be diversified away by investing in both Kent Gida and Yunsa Yunlu 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 Kent Gida and Yunsa Yunlu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kent Gida Maddeleri and Yunsa Yunlu Sanayi, you can compare the effects of market volatilities on Kent Gida and Yunsa Yunlu 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 Kent Gida with a short position of Yunsa Yunlu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Yunsa Yunlu.
Diversification Opportunities for Kent Gida and Yunsa Yunlu
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kent and Yunsa is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and Yunsa Yunlu Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunsa Yunlu Sanayi and Kent Gida 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 Kent Gida Maddeleri are associated (or correlated) with Yunsa Yunlu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunsa Yunlu Sanayi has no effect on the direction of Kent Gida i.e., Kent Gida and Yunsa Yunlu go up and down completely randomly.
Pair Corralation between Kent Gida and Yunsa Yunlu
Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to generate 1.72 times more return on investment than Yunsa Yunlu. However, Kent Gida is 1.72 times more volatile than Yunsa Yunlu Sanayi. It trades about 0.07 of its potential returns per unit of risk. Yunsa Yunlu Sanayi is currently generating about -0.07 per unit of risk. If you would invest 96,700 in Kent Gida Maddeleri on September 14, 2024 and sell it today you would earn a total of 12,700 from holding Kent Gida Maddeleri or generate 13.13% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Kent Gida Maddeleri vs. Yunsa Yunlu Sanayi
Performance |
Timeline |
Kent Gida Maddeleri |
Yunsa Yunlu Sanayi |
Kent Gida and Yunsa Yunlu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kent Gida and Yunsa Yunlu
The main advantage of trading using opposite Kent Gida and Yunsa Yunlu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kent Gida position performs unexpectedly, Yunsa Yunlu 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 Yunsa Yunlu will offset losses from the drop in Yunsa Yunlu's long position.Kent Gida vs. Eregli Demir ve | Kent Gida vs. Turkiye Petrol Rafinerileri | Kent Gida vs. Turkiye Sise ve | Kent Gida 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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