Correlation Between Eregli Demir and Katmerciler Arac
Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Katmerciler Arac 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 Eregli Demir and Katmerciler Arac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eregli Demir ve and Katmerciler Arac Ustu, you can compare the effects of market volatilities on Eregli Demir and Katmerciler Arac 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 Eregli Demir with a short position of Katmerciler Arac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Katmerciler Arac.
Diversification Opportunities for Eregli Demir and Katmerciler Arac
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Eregli and Katmerciler is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Katmerciler Arac Ustu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katmerciler Arac Ustu and Eregli Demir 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 Eregli Demir ve are associated (or correlated) with Katmerciler Arac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katmerciler Arac Ustu has no effect on the direction of Eregli Demir i.e., Eregli Demir and Katmerciler Arac go up and down completely randomly.
Pair Corralation between Eregli Demir and Katmerciler Arac
Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.69 times more return on investment than Katmerciler Arac. However, Eregli Demir ve is 1.46 times less risky than Katmerciler Arac. It trades about 0.02 of its potential returns per unit of risk. Katmerciler Arac Ustu is currently generating about -0.25 per unit of risk. If you would invest 4,632 in Eregli Demir ve on March 13, 2024 and sell it today you would earn a total of 12.00 from holding Eregli Demir ve or generate 0.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eregli Demir ve vs. Katmerciler Arac Ustu
Performance |
Timeline |
Eregli Demir ve |
Katmerciler Arac Ustu |
Eregli Demir and Katmerciler Arac Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eregli Demir and Katmerciler Arac
The main advantage of trading using opposite Eregli Demir and Katmerciler Arac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eregli Demir position performs unexpectedly, Katmerciler Arac 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 Katmerciler Arac will offset losses from the drop in Katmerciler Arac's long position.Eregli Demir vs. Turkiye Petrol Rafinerileri | Eregli Demir vs. Koc Holding AS | Eregli Demir vs. Turkiye Sise ve | Eregli Demir vs. Turk Telekomunikasyon AS |
Katmerciler Arac vs. Turkiye Petrol Rafinerileri | Katmerciler Arac vs. Aselsan Elektronik Sanayi | Katmerciler Arac vs. Petkim Petrokimya Holding |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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