Correlation Between Prizma Pres and Escort Teknoloji

Can any of the company-specific risk be diversified away by investing in both Prizma Pres and Escort Teknoloji 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 Prizma Pres and Escort Teknoloji into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Prizma Pres Matbaacilik and Escort Teknoloji Yatirim, you can compare the effects of market volatilities on Prizma Pres and Escort Teknoloji 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 Prizma Pres with a short position of Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prizma Pres and Escort Teknoloji.

Diversification Opportunities for Prizma Pres and Escort Teknoloji

-0.51

Correlation Coefficient

Prizma Pres  Escort Teknoloji

Excellent diversification

The 3 months correlation between Prizma and Escort is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Prizma Pres Matbaacilik and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji Yatirim and Prizma Pres 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 Prizma Pres Matbaacilik are associated (or correlated) with Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of Prizma Pres i.e., Prizma Pres and Escort Teknoloji go up and down completely randomly.

Pair Corralation between Prizma Pres and Escort Teknoloji

Assuming the 90 days trading horizon Prizma Pres Matbaacilik is expected to under-perform the Escort Teknoloji. In addition to that, Prizma Pres is 1.01 times more volatile than Escort Teknoloji Yatirim. It trades about -0.1 of its total potential returns per unit of risk. Escort Teknoloji Yatirim is currently generating about -0.03 per unit of volatility. If you would invest  8,115  in Escort Teknoloji Yatirim on October 7, 2024 and sell it today you would lose (2,770) from holding Escort Teknoloji Yatirim or give up 34.13% of portfolio value over 90 days.

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

Prizma Pres Matbaacilik  vs.  Escort Teknoloji Yatirim

Prizma Pres Matbaacilik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Prizma Pres Matbaacilik 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 February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Escort Teknoloji Yatirim

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Escort Teknoloji Yatirim are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Escort Teknoloji may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Prizma Pres and Escort Teknoloji

The main advantage of trading using opposite Prizma Pres and Escort Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prizma Pres position performs unexpectedly, Escort Teknoloji 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 Escort Teknoloji will offset losses from the drop in Escort Teknoloji's long position.

The idea behind Prizma Pres Matbaacilik and Escort Teknoloji Yatirim 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 Commodity Directory module to find actively traded commodities issued by global exchanges.