Correlation Between Adese Gayrimenkul and Lokman Hekim
Can any of the company-specific risk be diversified away by investing in both Adese Gayrimenkul and Lokman Hekim 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 Adese Gayrimenkul and Lokman Hekim into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Adese Gayrimenkul Yatirim and Lokman Hekim Engurusag, you can compare the effects of market volatilities on Adese Gayrimenkul and Lokman Hekim 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 Adese Gayrimenkul with a short position of Lokman Hekim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Adese Gayrimenkul and Lokman Hekim.
Diversification Opportunities for Adese Gayrimenkul and Lokman Hekim
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Adese and Lokman is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Adese Gayrimenkul Yatirim and Lokman Hekim Engurusag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lokman Hekim Engurusag and Adese Gayrimenkul 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 Adese Gayrimenkul Yatirim are associated (or correlated) with Lokman Hekim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lokman Hekim Engurusag has no effect on the direction of Adese Gayrimenkul i.e., Adese Gayrimenkul and Lokman Hekim go up and down completely randomly.
Pair Corralation between Adese Gayrimenkul and Lokman Hekim
Assuming the 90 days trading horizon Adese Gayrimenkul Yatirim is expected to generate 3.01 times more return on investment than Lokman Hekim. However, Adese Gayrimenkul is 3.01 times more volatile than Lokman Hekim Engurusag. It trades about 0.14 of its potential returns per unit of risk. Lokman Hekim Engurusag is currently generating about -0.19 per unit of risk. If you would invest 202.00 in Adese Gayrimenkul Yatirim on September 25, 2024 and sell it today you would earn a total of 19.00 from holding Adese Gayrimenkul Yatirim or generate 9.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Adese Gayrimenkul Yatirim vs. Lokman Hekim Engurusag
Performance |
Timeline |
Adese Gayrimenkul Yatirim |
Lokman Hekim Engurusag |
Adese Gayrimenkul and Lokman Hekim Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Adese Gayrimenkul and Lokman Hekim
The main advantage of trading using opposite Adese Gayrimenkul and Lokman Hekim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Adese Gayrimenkul position performs unexpectedly, Lokman Hekim 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 Lokman Hekim will offset losses from the drop in Lokman Hekim's long position.Adese Gayrimenkul vs. Trabzon Liman Isletmeciligi | Adese Gayrimenkul vs. Bayrak EBT Taban | Adese Gayrimenkul vs. Alkim Kagit Sanayi | Adese Gayrimenkul vs. Federal Mogul Izmit |
Lokman Hekim vs. Is Yatirim Ortakligi | Lokman Hekim vs. Euro Menkul Kiymet | Lokman Hekim vs. Euro Trend Yatirim | Lokman Hekim vs. Hedef Girisim Sermayesi |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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