Correlation Between Eregli Demir and Flap Kongre

Can any of the company-specific risk be diversified away by investing in both Eregli Demir and Flap Kongre 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 Flap Kongre 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 Flap Kongre Toplanti, you can compare the effects of market volatilities on Eregli Demir and Flap Kongre 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 Flap Kongre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eregli Demir and Flap Kongre.

Diversification Opportunities for Eregli Demir and Flap Kongre

-0.1

Correlation Coefficient

Eregli Demir  Flap Kongre

Good diversification

The 3 months correlation between Eregli and Flap is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Eregli Demir ve and Flap Kongre Toplanti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flap Kongre Toplanti 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 Flap Kongre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flap Kongre Toplanti has no effect on the direction of Eregli Demir i.e., Eregli Demir and Flap Kongre go up and down completely randomly.

Pair Corralation between Eregli Demir and Flap Kongre

Assuming the 90 days trading horizon Eregli Demir ve is expected to generate 0.51 times more return on investment than Flap Kongre. However, Eregli Demir ve is 1.97 times less risky than Flap Kongre. It trades about 0.02 of its potential returns per unit of risk. Flap Kongre Toplanti is currently generating about -0.16 per unit of risk. If you would invest  2,467  in Eregli Demir ve on September 22, 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 Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Eregli Demir ve  vs.  Flap Kongre Toplanti

Eregli Demir ve

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Eregli Demir ve are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Eregli Demir is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Eregli Demir and Flap Kongre

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

The idea behind Eregli Demir ve and Flap Kongre Toplanti 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.

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.