Correlation Between Eminis Ambalaj and Global Menkul

Can any of the company-specific risk be diversified away by investing in both Eminis Ambalaj and Global Menkul 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 Eminis Ambalaj and Global Menkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eminis Ambalaj Sanayi and Global Menkul Degerler, you can compare the effects of market volatilities on Eminis Ambalaj and Global Menkul 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 Eminis Ambalaj with a short position of Global Menkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eminis Ambalaj and Global Menkul.

Diversification Opportunities for Eminis Ambalaj and Global Menkul

-0.7

Correlation Coefficient

Eminis Ambalaj  Global Menkul

Excellent diversification

The 3 months correlation between Eminis and Global is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Eminis Ambalaj Sanayi and Global Menkul Degerler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Menkul Degerler and Eminis Ambalaj 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 Eminis Ambalaj Sanayi are associated (or correlated) with Global Menkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Menkul Degerler has no effect on the direction of Eminis Ambalaj i.e., Eminis Ambalaj and Global Menkul go up and down completely randomly.

Pair Corralation between Eminis Ambalaj and Global Menkul

Assuming the 90 days trading horizon Eminis Ambalaj is expected to generate 2.6 times less return on investment than Global Menkul. But when comparing it to its historical volatility, Eminis Ambalaj Sanayi is 1.18 times less risky than Global Menkul. It trades about 0.02 of its potential returns per unit of risk. Global Menkul Degerler is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,237  in Global Menkul Degerler on September 22, 2024 and sell it today you would earn a total of  39.00  from holding Global Menkul Degerler or generate 3.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Eminis Ambalaj Sanayi  vs.  Global Menkul Degerler

Eminis Ambalaj Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eminis Ambalaj Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Global Menkul Degerler

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Global Menkul Degerler are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Global Menkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eminis Ambalaj and Global Menkul

The main advantage of trading using opposite Eminis Ambalaj and Global Menkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eminis Ambalaj position performs unexpectedly, Global Menkul 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 Global Menkul will offset losses from the drop in Global Menkul's long position.

The idea behind Eminis Ambalaj Sanayi and Global Menkul Degerler 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.