Correlation Between Unlu Yatirim and E Data

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

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

Diversification Opportunities for Unlu Yatirim and E Data

0.08

Correlation Coefficient

Unlu Yatirim  E Data

Significant diversification

The 3 months correlation between Unlu and EDATA is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Unlu Yatirim Holding 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 Unlu Yatirim 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 Unlu Yatirim Holding 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 Unlu Yatirim i.e., Unlu Yatirim and E Data go up and down completely randomly.

Pair Corralation between Unlu Yatirim and E Data

Assuming the 90 days trading horizon Unlu Yatirim is expected to generate 2.55 times less return on investment than E Data. But when comparing it to its historical volatility, Unlu Yatirim Holding is 3.2 times less risky than E Data. It trades about 0.06 of its potential returns per unit of risk. E Data Teknoloji Pazarlama is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  657.00  in E Data Teknoloji Pazarlama on October 23, 2024 and sell it today you would earn a total of  700.00  from holding E Data Teknoloji Pazarlama or generate 106.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.99%
Values	Daily Returns

Unlu Yatirim Holding  vs.  E Data Teknoloji Pazarlama

Unlu Yatirim Holding

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Unlu Yatirim Holding are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Unlu Yatirim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

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 fairly strong forward indicators, E Data is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Unlu Yatirim and E Data

The main advantage of trading using opposite Unlu Yatirim and E Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unlu Yatirim 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 Unlu Yatirim Holding 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.