Correlation Between Senkron Guvenlik and Ege Endustri

Can any of the company-specific risk be diversified away by investing in both Senkron Guvenlik and Ege Endustri 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 Senkron Guvenlik and Ege Endustri into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Senkron Guvenlik ve and Ege Endustri ve, you can compare the effects of market volatilities on Senkron Guvenlik and Ege Endustri 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 Senkron Guvenlik with a short position of Ege Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Senkron Guvenlik and Ege Endustri.

Diversification Opportunities for Senkron Guvenlik and Ege Endustri

0.35

Correlation Coefficient

Senkron Guvenlik  Ege Endustri

Weak diversification

The 3 months correlation between Senkron and Ege is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Senkron Guvenlik ve and Ege Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ege Endustri ve and Senkron Guvenlik 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 Senkron Guvenlik ve are associated (or correlated) with Ege Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ege Endustri ve has no effect on the direction of Senkron Guvenlik i.e., Senkron Guvenlik and Ege Endustri go up and down completely randomly.

Pair Corralation between Senkron Guvenlik and Ege Endustri

Assuming the 90 days trading horizon Senkron Guvenlik ve is expected to under-perform the Ege Endustri. In addition to that, Senkron Guvenlik is 1.17 times more volatile than Ege Endustri ve. It trades about -0.04 of its total potential returns per unit of risk. Ege Endustri ve is currently generating about -0.02 per unit of volatility. If you would invest  1,070,000  in Ege Endustri ve on September 22, 2024 and sell it today you would lose (50,000) from holding Ege Endustri ve or give up 4.67% of portfolio value over 90 days.

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

Senkron Guvenlik ve  vs.  Ege Endustri ve

Senkron Guvenlik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Senkron Guvenlik ve 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.

Ege Endustri ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ege Endustri ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Ege Endustri is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Senkron Guvenlik and Ege Endustri

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

The idea behind Senkron Guvenlik ve and Ege Endustri ve 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.