Correlation Between Derimod Konfeksiyon and Tofas Turk
Can any of the company-specific risk be diversified away by investing in both Derimod Konfeksiyon and Tofas Turk 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 Derimod Konfeksiyon and Tofas Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Derimod Konfeksiyon Ayakkabi and Tofas Turk Otomobil, you can compare the effects of market volatilities on Derimod Konfeksiyon and Tofas Turk 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 Derimod Konfeksiyon with a short position of Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Derimod Konfeksiyon and Tofas Turk.
Diversification Opportunities for Derimod Konfeksiyon and Tofas Turk
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Derimod and Tofas is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Derimod Konfeksiyon Ayakkabi and Tofas Turk Otomobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tofas Turk Otomobil and Derimod Konfeksiyon 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 Derimod Konfeksiyon Ayakkabi are associated (or correlated) with Tofas Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tofas Turk Otomobil has no effect on the direction of Derimod Konfeksiyon i.e., Derimod Konfeksiyon and Tofas Turk go up and down completely randomly.
Pair Corralation between Derimod Konfeksiyon and Tofas Turk
Assuming the 90 days trading horizon Derimod Konfeksiyon Ayakkabi is expected to generate 1.79 times more return on investment than Tofas Turk. However, Derimod Konfeksiyon is 1.79 times more volatile than Tofas Turk Otomobil. It trades about 0.08 of its potential returns per unit of risk. Tofas Turk Otomobil is currently generating about -0.21 per unit of risk. If you would invest 3,198 in Derimod Konfeksiyon Ayakkabi on September 24, 2024 and sell it today you would earn a total of 156.00 from holding Derimod Konfeksiyon Ayakkabi or generate 4.88% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Derimod Konfeksiyon Ayakkabi vs. Tofas Turk Otomobil
Performance |
Timeline |
Derimod Konfeksiyon |
Tofas Turk Otomobil |
Derimod Konfeksiyon and Tofas Turk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Derimod Konfeksiyon and Tofas Turk
The main advantage of trading using opposite Derimod Konfeksiyon and Tofas Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Derimod Konfeksiyon position performs unexpectedly, Tofas Turk 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 Tofas Turk will offset losses from the drop in Tofas Turk's long position.Derimod Konfeksiyon vs. Tofas Turk Otomobil | Derimod Konfeksiyon vs. Hektas Ticaret TAS | Derimod Konfeksiyon vs. Eregli Demir ve |
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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