Correlation Between Akenerji Elektrik and Eregli Demir
Can any of the company-specific risk be diversified away by investing in both Akenerji Elektrik and Eregli 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 Akenerji Elektrik and Eregli Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akenerji Elektrik Uretim and Eregli Demir ve, you can compare the effects of market volatilities on Akenerji Elektrik and Eregli 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 Akenerji Elektrik with a short position of Eregli Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akenerji Elektrik and Eregli Demir.
Diversification Opportunities for Akenerji Elektrik and Eregli Demir
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Akenerji and Eregli is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Akenerji Elektrik Uretim and Eregli Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eregli Demir ve and Akenerji Elektrik 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 Akenerji Elektrik Uretim are associated (or correlated) with Eregli Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eregli Demir ve has no effect on the direction of Akenerji Elektrik i.e., Akenerji Elektrik and Eregli Demir go up and down completely randomly.
Pair Corralation between Akenerji Elektrik and Eregli Demir
Assuming the 90 days trading horizon Akenerji Elektrik Uretim is expected to generate 1.66 times more return on investment than Eregli Demir. However, Akenerji Elektrik is 1.66 times more volatile than Eregli Demir ve. It trades about 0.08 of its potential returns per unit of risk. Eregli Demir ve is currently generating about 0.05 per unit of risk. If you would invest 325.00 in Akenerji Elektrik Uretim on June 29, 2024 and sell it today you would earn a total of 885.00 from holding Akenerji Elektrik Uretim or generate 272.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Akenerji Elektrik Uretim vs. Eregli Demir ve
Performance |
Timeline |
Akenerji Elektrik Uretim |
Eregli Demir ve |
Akenerji Elektrik and Eregli Demir Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akenerji Elektrik and Eregli Demir
The main advantage of trading using opposite Akenerji Elektrik and Eregli Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akenerji Elektrik position performs unexpectedly, Eregli 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 Eregli Demir will offset losses from the drop in Eregli Demir's long position.Akenerji Elektrik vs. Datagate Bilgisayar Malzemeleri | Akenerji Elektrik vs. Gentas Genel Metal | Akenerji Elektrik vs. Mackolik Internet Hizmetleri | Akenerji Elektrik vs. Koza Anadolu Metal |
Eregli Demir vs. Petkim Petrokimya Holding | Eregli Demir vs. Tekfen Holding AS | Eregli Demir vs. Imas Makina Sanayi | Eregli Demir vs. Brisa Bridgestone Sabanci |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |