Correlation Between Datagate Bilgisayar and DCT TRADING

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

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

Diversification Opportunities for Datagate Bilgisayar and DCT TRADING

0.02

Correlation Coefficient

Datagate Bilgisayar  DCT TRADING

Significant diversification

The 3 months correlation between Datagate and DCT is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Datagate Bilgisayar Malzemeler and DCT TRADING DIS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DCT TRADING DIS and Datagate Bilgisayar 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 Datagate Bilgisayar Malzemeleri are associated (or correlated) with DCT TRADING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DCT TRADING DIS has no effect on the direction of Datagate Bilgisayar i.e., Datagate Bilgisayar and DCT TRADING go up and down completely randomly.

Pair Corralation between Datagate Bilgisayar and DCT TRADING

Assuming the 90 days trading horizon Datagate Bilgisayar Malzemeleri is expected to generate 1.24 times more return on investment than DCT TRADING. However, Datagate Bilgisayar is 1.24 times more volatile than DCT TRADING DIS. It trades about 0.17 of its potential returns per unit of risk. DCT TRADING DIS is currently generating about 0.02 per unit of risk. If you would invest  5,350  in Datagate Bilgisayar Malzemeleri on April 23, 2025 and sell it today you would earn a total of  2,285  from holding Datagate Bilgisayar Malzemeleri or generate 42.71% return on investment over 90 days.

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

Datagate Bilgisayar Malzemeler  vs.  DCT TRADING DIS

Datagate Bilgisayar

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Datagate Bilgisayar Malzemeleri are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Datagate Bilgisayar demonstrated solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Datagate Bilgisayar and DCT TRADING

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

The idea behind Datagate Bilgisayar Malzemeleri and DCT TRADING DIS 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.