Correlation Between Safkar Ege and NYSE Composite
Can any of the company-specific risk be diversified away by investing in both Safkar Ege and NYSE Composite 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 Safkar Ege and NYSE Composite into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safkar Ege Sogutmacilik and NYSE Composite, you can compare the effects of market volatilities on Safkar Ege and NYSE Composite 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 Safkar Ege with a short position of NYSE Composite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safkar Ege and NYSE Composite.
Diversification Opportunities for Safkar Ege and NYSE Composite
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Safkar and NYSE is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Safkar Ege Sogutmacilik and NYSE Composite in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NYSE Composite and Safkar Ege 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 Safkar Ege Sogutmacilik are associated (or correlated) with NYSE Composite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NYSE Composite has no effect on the direction of Safkar Ege i.e., Safkar Ege and NYSE Composite go up and down completely randomly.
Pair Corralation between Safkar Ege and NYSE Composite
Assuming the 90 days trading horizon Safkar Ege Sogutmacilik is expected to generate 3.99 times more return on investment than NYSE Composite. However, Safkar Ege is 3.99 times more volatile than NYSE Composite. It trades about 0.11 of its potential returns per unit of risk. NYSE Composite is currently generating about 0.04 per unit of risk. If you would invest 775.00 in Safkar Ege Sogutmacilik on February 4, 2024 and sell it today you would earn a total of 3,435 from holding Safkar Ege Sogutmacilik or generate 443.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 99.6% |
Values | Daily Returns |
Safkar Ege Sogutmacilik vs. NYSE Composite
Performance |
Timeline |
Safkar Ege and NYSE Composite Volatility Contrast
Predicted Return Density |
Returns |
Safkar Ege Sogutmacilik
Pair trading matchups for Safkar Ege
NYSE Composite
Pair trading matchups for NYSE Composite
Pair Trading with Safkar Ege and NYSE Composite
The main advantage of trading using opposite Safkar Ege and NYSE Composite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safkar Ege position performs unexpectedly, NYSE Composite 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 NYSE Composite will offset losses from the drop in NYSE Composite's long position.Safkar Ege vs. Ege Endustri ve | Safkar Ege vs. Bosch Fren Sistemleri | Safkar Ege vs. Jantsa Jant Sanayi | Safkar Ege vs. Goodyear Lastikleri TAS |
NYSE Composite vs. The Cheesecake Factory | NYSE Composite vs. Vector Group | NYSE Composite vs. Ecolab Inc | NYSE Composite vs. Dine Brands Global |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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