Correlation Between Ege Endustri and Datagate Bilgisayar

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

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

Diversification Opportunities for Ege Endustri and Datagate Bilgisayar

-0.47

Correlation Coefficient

Ege Endustri  Datagate Bilgisayar

Very good diversification

The 3 months correlation between Ege and Datagate is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Ege Endustri ve and Datagate Bilgisayar Malzemeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datagate Bilgisayar and Ege Endustri 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 Ege Endustri ve are associated (or correlated) with Datagate Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datagate Bilgisayar has no effect on the direction of Ege Endustri i.e., Ege Endustri and Datagate Bilgisayar go up and down completely randomly.

Pair Corralation between Ege Endustri and Datagate Bilgisayar

Assuming the 90 days trading horizon Ege Endustri ve is expected to under-perform the Datagate Bilgisayar. But the stock apears to be less risky and, when comparing its historical volatility, Ege Endustri ve is 1.91 times less risky than Datagate Bilgisayar. The stock trades about -0.15 of its potential returns per unit of risk. The Datagate Bilgisayar Malzemeleri is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  5,250  in Datagate Bilgisayar Malzemeleri on April 8, 2025 and sell it today you would earn a total of  1,240  from holding Datagate Bilgisayar Malzemeleri or generate 23.62% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.36%
Values	Daily Returns

Ege Endustri ve  vs.  Datagate Bilgisayar Malzemeler

Ege Endustri ve

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ege Endustri ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Datagate Bilgisayar

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Datagate Bilgisayar Malzemeleri are ranked lower than 8 (%) 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.

Pair Trading with Ege Endustri and Datagate Bilgisayar

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

The idea behind Ege Endustri ve and Datagate Bilgisayar Malzemeleri 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.

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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.