Correlation Between Applied Materials and TGS Dis
Can any of the company-specific risk be diversified away by investing in both Applied Materials and TGS Dis 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 Applied Materials and TGS Dis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Applied Materials and TGS Dis Ticaret, you can compare the effects of market volatilities on Applied Materials and TGS Dis 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 Applied Materials with a short position of TGS Dis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Applied Materials and TGS Dis.
Diversification Opportunities for Applied Materials and TGS Dis
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Applied and TGS is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Applied Materials and TGS Dis Ticaret in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS Dis Ticaret and Applied Materials 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 Applied Materials are associated (or correlated) with TGS Dis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS Dis Ticaret has no effect on the direction of Applied Materials i.e., Applied Materials and TGS Dis go up and down completely randomly.
Pair Corralation between Applied Materials and TGS Dis
Given the investment horizon of 90 days Applied Materials is expected to generate 0.49 times more return on investment than TGS Dis. However, Applied Materials is 2.04 times less risky than TGS Dis. It trades about 0.2 of its potential returns per unit of risk. TGS Dis Ticaret is currently generating about -0.2 per unit of risk. If you would invest 20,489 in Applied Materials on February 28, 2024 and sell it today you would earn a total of 1,643 from holding Applied Materials or generate 8.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 95.45% |
Values | Daily Returns |
Applied Materials vs. TGS Dis Ticaret
Performance |
Timeline |
Applied Materials |
TGS Dis Ticaret |
Applied Materials and TGS Dis Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Applied Materials and TGS Dis
The main advantage of trading using opposite Applied Materials and TGS Dis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Applied Materials position performs unexpectedly, TGS Dis 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 TGS Dis will offset losses from the drop in TGS Dis' long position.Applied Materials vs. KLA Tencor | Applied Materials vs. ASML Holding NV | Applied Materials vs. Axcelis Technologies | Applied Materials vs. Teradyne |
TGS Dis vs. Turkish Airlines | TGS Dis vs. Turkiye Petrol Rafinerileri | TGS Dis vs. TAV Havalimanlari Holding | TGS Dis vs. Petkim Petrokimya Holding |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
Other Complementary Tools
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
CEOs Directory Screen CEOs from public companies around the world | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
Bonds Directory Find actively traded corporate debentures issued by US companies |