Correlation Between Soktas Tekstil and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both Soktas Tekstil and Eminis Ambalaj 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 Soktas Tekstil and Eminis Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soktas Tekstil Sanayi and Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Soktas Tekstil and Eminis Ambalaj 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 Soktas Tekstil with a short position of Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soktas Tekstil and Eminis Ambalaj.
Diversification Opportunities for Soktas Tekstil and Eminis Ambalaj
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Soktas and Eminis is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Soktas Tekstil Sanayi and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj Sanayi and Soktas Tekstil 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 Soktas Tekstil Sanayi are associated (or correlated) with Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Soktas Tekstil i.e., Soktas Tekstil and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between Soktas Tekstil and Eminis Ambalaj
Assuming the 90 days trading horizon Soktas Tekstil Sanayi is expected to generate 0.72 times more return on investment than Eminis Ambalaj. However, Soktas Tekstil Sanayi is 1.39 times less risky than Eminis Ambalaj. It trades about -0.09 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about -0.07 per unit of risk. If you would invest 591.00 in Soktas Tekstil Sanayi on October 21, 2024 and sell it today you would lose (101.00) from holding Soktas Tekstil Sanayi or give up 17.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Soktas Tekstil Sanayi vs. Eminis Ambalaj Sanayi
Performance |
Timeline |
Soktas Tekstil Sanayi |
Eminis Ambalaj Sanayi |
Soktas Tekstil and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Soktas Tekstil and Eminis Ambalaj
The main advantage of trading using opposite Soktas Tekstil and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soktas Tekstil position performs unexpectedly, Eminis Ambalaj 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 Eminis Ambalaj will offset losses from the drop in Eminis Ambalaj's long position.Soktas Tekstil vs. Turkiye Garanti Bankasi | ||
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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