Correlation Between Penguen Gida and Kristal Kola
Can any of the company-specific risk be diversified away by investing in both Penguen Gida and Kristal Kola 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 Penguen Gida and Kristal Kola into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penguen Gida Sanayi and Kristal Kola ve, you can compare the effects of market volatilities on Penguen Gida and Kristal Kola 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 Penguen Gida with a short position of Kristal Kola. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penguen Gida and Kristal Kola.
Diversification Opportunities for Penguen Gida and Kristal Kola
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Penguen and Kristal is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Penguen Gida Sanayi and Kristal Kola ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kristal Kola ve and Penguen Gida 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 Penguen Gida Sanayi are associated (or correlated) with Kristal Kola. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kristal Kola ve has no effect on the direction of Penguen Gida i.e., Penguen Gida and Kristal Kola go up and down completely randomly.
Pair Corralation between Penguen Gida and Kristal Kola
Assuming the 90 days trading horizon Penguen Gida is expected to generate 1.39 times less return on investment than Kristal Kola. But when comparing it to its historical volatility, Penguen Gida Sanayi is 1.61 times less risky than Kristal Kola. It trades about 0.03 of its potential returns per unit of risk. Kristal Kola ve is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 558.00 in Kristal Kola ve on September 23, 2024 and sell it today you would earn a total of 17.00 from holding Kristal Kola ve or generate 3.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Penguen Gida Sanayi vs. Kristal Kola ve
Performance |
Timeline |
Penguen Gida Sanayi |
Kristal Kola ve |
Penguen Gida and Kristal Kola Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Penguen Gida and Kristal Kola
The main advantage of trading using opposite Penguen Gida and Kristal Kola positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penguen Gida position performs unexpectedly, Kristal Kola 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 Kristal Kola will offset losses from the drop in Kristal Kola's long position.Penguen Gida vs. Trabzon Liman Isletmeciligi | Penguen Gida vs. Bayrak EBT Taban | Penguen Gida vs. Alkim Kagit Sanayi | Penguen Gida vs. Federal Mogul Izmit |
Kristal Kola vs. MEGA METAL | Kristal Kola vs. Koza Anadolu Metal | Kristal Kola vs. Gentas Genel Metal | Kristal Kola vs. ICBC Turkey Bank |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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