Correlation Between Euro Menkul and Iskenderun Demir
Can any of the company-specific risk be diversified away by investing in both Euro Menkul and Iskenderun 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 Euro Menkul and Iskenderun Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Euro Menkul Kiymet and Iskenderun Demir ve, you can compare the effects of market volatilities on Euro Menkul and Iskenderun 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 Euro Menkul with a short position of Iskenderun Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Euro Menkul and Iskenderun Demir.
Diversification Opportunities for Euro Menkul and Iskenderun Demir
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Euro and Iskenderun is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Euro Menkul Kiymet and Iskenderun Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iskenderun Demir and Euro Menkul 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 Euro Menkul Kiymet are associated (or correlated) with Iskenderun Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iskenderun Demir has no effect on the direction of Euro Menkul i.e., Euro Menkul and Iskenderun Demir go up and down completely randomly.
Pair Corralation between Euro Menkul and Iskenderun Demir
Assuming the 90 days trading horizon Euro Menkul Kiymet is expected to under-perform the Iskenderun Demir. In addition to that, Euro Menkul is 1.22 times more volatile than Iskenderun Demir ve. It trades about -0.03 of its total potential returns per unit of risk. Iskenderun Demir ve is currently generating about 0.15 per unit of volatility. If you would invest 3,450 in Iskenderun Demir ve on September 12, 2024 and sell it today you would earn a total of 680.00 from holding Iskenderun Demir ve or generate 19.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Euro Menkul Kiymet vs. Iskenderun Demir ve
Performance |
Timeline |
Euro Menkul Kiymet |
Iskenderun Demir |
Euro Menkul and Iskenderun Demir Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Euro Menkul and Iskenderun Demir
The main advantage of trading using opposite Euro Menkul and Iskenderun Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Euro Menkul position performs unexpectedly, Iskenderun 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 Iskenderun Demir will offset losses from the drop in Iskenderun Demir's long position.Euro Menkul vs. ICBC Turkey Bank | Euro Menkul vs. Akcansa Cimento Sanayi | Euro Menkul vs. Cuhadaroglu Metal Sanayi | Euro Menkul vs. Trabzonspor Sportif Yatirim |
Iskenderun Demir vs. Ayes Celik Hasir | Iskenderun Demir vs. Trend Gayrimenkul Yatirim | Iskenderun Demir vs. Ege Endustri ve | Iskenderun Demir vs. Alarko Carrier Sanayi |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |