Correlation Between Dogus Otomotiv and Eregli Demir
Can any of the company-specific risk be diversified away by investing in both Dogus Otomotiv and Eregli Demir 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 Dogus Otomotiv and Eregli Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Dogus Otomotiv Servis and Eregli Demir ve, you can compare the effects of market volatilities on Dogus Otomotiv and Eregli Demir 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 Dogus Otomotiv with a short position of Eregli Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dogus Otomotiv and Eregli Demir.
Diversification Opportunities for Dogus Otomotiv and Eregli Demir
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Dogus and Eregli is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Dogus Otomotiv Servis and Eregli Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eregli Demir ve and Dogus Otomotiv 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 Dogus Otomotiv Servis are associated (or correlated) with Eregli Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eregli Demir ve has no effect on the direction of Dogus Otomotiv i.e., Dogus Otomotiv and Eregli Demir go up and down completely randomly.
Pair Corralation between Dogus Otomotiv and Eregli Demir
Assuming the 90 days trading horizon Dogus Otomotiv Servis is expected to under-perform the Eregli Demir. But the stock apears to be less risky and, when comparing its historical volatility, Dogus Otomotiv Servis is 1.06 times less risky than Eregli Demir. The stock trades about -0.07 of its potential returns per unit of risk. The Eregli Demir ve is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,467 in Eregli Demir ve on September 23, 2024 and sell it today you would earn a total of 43.00 from holding Eregli Demir ve or generate 1.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Dogus Otomotiv Servis vs. Eregli Demir ve
Performance |
Timeline |
Dogus Otomotiv Servis |
Eregli Demir ve |
Dogus Otomotiv and Eregli Demir Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dogus Otomotiv and Eregli Demir
The main advantage of trading using opposite Dogus Otomotiv and Eregli Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dogus Otomotiv position performs unexpectedly, Eregli Demir 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 Eregli Demir will offset losses from the drop in Eregli Demir's long position.Dogus Otomotiv vs. Ford Otomotiv Sanayi | Dogus Otomotiv vs. Tofas Turk Otomobil | Dogus Otomotiv vs. Hektas Ticaret TAS | Dogus Otomotiv vs. Eregli Demir ve |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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