Correlation Between DCT TRADING and Escort Teknoloji

Can any of the company-specific risk be diversified away by investing in both DCT TRADING and Escort Teknoloji 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 DCT TRADING and Escort Teknoloji into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DCT TRADING DIS and Escort Teknoloji Yatirim, you can compare the effects of market volatilities on DCT TRADING and Escort Teknoloji 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 DCT TRADING with a short position of Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of DCT TRADING and Escort Teknoloji.

Diversification Opportunities for DCT TRADING and Escort Teknoloji

-0.28

Correlation Coefficient

DCT TRADING  Escort Teknoloji

Very good diversification

The 3 months correlation between DCT and Escort is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding DCT TRADING DIS and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji Yatirim and DCT TRADING 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 DCT TRADING DIS are associated (or correlated) with Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of DCT TRADING i.e., DCT TRADING and Escort Teknoloji go up and down completely randomly.

Pair Corralation between DCT TRADING and Escort Teknoloji

Assuming the 90 days trading horizon DCT TRADING is expected to generate 8.33 times less return on investment than Escort Teknoloji. But when comparing it to its historical volatility, DCT TRADING DIS is 1.06 times less risky than Escort Teknoloji. It trades about 0.02 of its potential returns per unit of risk. Escort Teknoloji Yatirim is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  255.00  in Escort Teknoloji Yatirim on April 22, 2025 and sell it today you would earn a total of  88.00  from holding Escort Teknoloji Yatirim or generate 34.51% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

DCT TRADING DIS  vs.  Escort Teknoloji Yatirim

DCT TRADING DIS

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in DCT TRADING DIS are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, DCT TRADING is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Escort Teknoloji Yatirim

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Escort Teknoloji Yatirim are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Escort Teknoloji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with DCT TRADING and Escort Teknoloji

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

The idea behind DCT TRADING DIS and Escort Teknoloji Yatirim 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.