Correlation Between Pergamon Status and E Data

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

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

Diversification Opportunities for Pergamon Status and E Data

0.17

Correlation Coefficient

Pergamon Status  E Data

Average diversification

The 3 months correlation between Pergamon and EDATA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Pergamon Status Dis 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 Pergamon Status 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 Pergamon Status Dis 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 Pergamon Status i.e., Pergamon Status and E Data go up and down completely randomly.

Pair Corralation between Pergamon Status and E Data

Assuming the 90 days trading horizon Pergamon Status Dis is expected to generate 1.43 times more return on investment than E Data. However, Pergamon Status is 1.43 times more volatile than E Data Teknoloji Pazarlama. It trades about -0.04 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about -0.11 per unit of risk. If you would invest  12,650  in Pergamon Status Dis on September 24, 2024 and sell it today you would lose (4,205) from holding Pergamon Status Dis or give up 33.24% of portfolio value over 90 days.

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

Pergamon Status Dis  vs.  E Data Teknoloji Pazarlama

Pergamon Status Dis

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pergamon Status Dis has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

E Data Teknoloji

Risk-Adjusted Performance

0 of 100

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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Pergamon Status and E Data

The main advantage of trading using opposite Pergamon Status and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pergamon Status 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 Pergamon Status Dis 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.