Correlation Between Ihlas Gazetecilik and Matriks Bilgi

Can any of the company-specific risk be diversified away by investing in both Ihlas Gazetecilik and Matriks Bilgi 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 Ihlas Gazetecilik and Matriks Bilgi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ihlas Gazetecilik AS and Matriks Bilgi Dagitim, you can compare the effects of market volatilities on Ihlas Gazetecilik and Matriks Bilgi 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 Ihlas Gazetecilik with a short position of Matriks Bilgi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Gazetecilik and Matriks Bilgi.

Diversification Opportunities for Ihlas Gazetecilik and Matriks Bilgi

0.68

Correlation Coefficient

Ihlas Gazetecilik  Matriks Bilgi

Poor diversification

The 3 months correlation between Ihlas and Matriks is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Gazetecilik AS and Matriks Bilgi Dagitim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matriks Bilgi Dagitim and Ihlas Gazetecilik 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 Ihlas Gazetecilik AS are associated (or correlated) with Matriks Bilgi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matriks Bilgi Dagitim has no effect on the direction of Ihlas Gazetecilik i.e., Ihlas Gazetecilik and Matriks Bilgi go up and down completely randomly.

Pair Corralation between Ihlas Gazetecilik and Matriks Bilgi

Assuming the 90 days trading horizon Ihlas Gazetecilik AS is expected to generate 1.8 times more return on investment than Matriks Bilgi. However, Ihlas Gazetecilik is 1.8 times more volatile than Matriks Bilgi Dagitim. It trades about 0.08 of its potential returns per unit of risk. Matriks Bilgi Dagitim is currently generating about 0.11 per unit of risk. If you would invest  126.00  in Ihlas Gazetecilik AS on September 21, 2024 and sell it today you would earn a total of  25.00  from holding Ihlas Gazetecilik AS or generate 19.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Ihlas Gazetecilik AS  vs.  Matriks Bilgi Dagitim

Ihlas Gazetecilik

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ihlas Gazetecilik AS are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Ihlas Gazetecilik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Matriks Bilgi Dagitim

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Matriks Bilgi Dagitim are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Matriks Bilgi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ihlas Gazetecilik and Matriks Bilgi

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

The idea behind Ihlas Gazetecilik AS and Matriks Bilgi Dagitim 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.