Correlation Between E Data and DCT TRADING

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

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

Diversification Opportunities for E Data and DCT TRADING

0.46

Correlation Coefficient

E Data  DCT TRADING

Very weak diversification

The 3 months correlation between EDATA and DCT is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding E Data Teknoloji Pazarlama 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 E Data 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 E Data Teknoloji Pazarlama 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 E Data i.e., E Data and DCT TRADING go up and down completely randomly.

Pair Corralation between E Data and DCT TRADING

Assuming the 90 days trading horizon E Data Teknoloji Pazarlama is expected to generate 0.7 times more return on investment than DCT TRADING. However, E Data Teknoloji Pazarlama is 1.42 times less risky than DCT TRADING. It trades about 0.07 of its potential returns per unit of risk. DCT TRADING DIS is currently generating about 0.0 per unit of risk. If you would invest  419.00  in E Data Teknoloji Pazarlama on April 24, 2025 and sell it today you would earn a total of  39.00  from holding E Data Teknoloji Pazarlama or generate 9.31% return on investment over 90 days.

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

E Data Teknoloji Pazarlama  vs.  DCT TRADING DIS

E Data Teknoloji

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in E Data Teknoloji Pazarlama are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, E Data may actually be approaching a critical reversion point that can send shares even higher in August 2025.

DCT TRADING DIS

Risk-Adjusted Performance

Very Weak

Over the last 90 days DCT TRADING DIS has generated negative risk-adjusted returns adding no value to investors with long positions. 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 E Data and DCT TRADING

The main advantage of trading using opposite E Data and DCT TRADING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Data 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 E Data Teknoloji Pazarlama 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.