Correlation Between Sok Marketler and EIS Eczacibasi
Can any of the company-specific risk be diversified away by investing in both Sok Marketler and EIS Eczacibasi 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 Sok Marketler and EIS Eczacibasi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sok Marketler Ticaret and EIS Eczacibasi Ilac, you can compare the effects of market volatilities on Sok Marketler and EIS Eczacibasi 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 Sok Marketler with a short position of EIS Eczacibasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sok Marketler and EIS Eczacibasi.
Diversification Opportunities for Sok Marketler and EIS Eczacibasi
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sok and EIS is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sok Marketler Ticaret and EIS Eczacibasi Ilac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIS Eczacibasi Ilac and Sok Marketler 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 Sok Marketler Ticaret are associated (or correlated) with EIS Eczacibasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIS Eczacibasi Ilac has no effect on the direction of Sok Marketler i.e., Sok Marketler and EIS Eczacibasi go up and down completely randomly.
Pair Corralation between Sok Marketler and EIS Eczacibasi
Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to under-perform the EIS Eczacibasi. In addition to that, Sok Marketler is 1.16 times more volatile than EIS Eczacibasi Ilac. It trades about -0.12 of its total potential returns per unit of risk. EIS Eczacibasi Ilac is currently generating about 0.32 per unit of volatility. If you would invest 5,175 in EIS Eczacibasi Ilac on February 7, 2024 and sell it today you would earn a total of 600.00 from holding EIS Eczacibasi Ilac or generate 11.59% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sok Marketler Ticaret vs. EIS Eczacibasi Ilac
Performance |
Timeline |
Sok Marketler Ticaret |
EIS Eczacibasi Ilac |
Sok Marketler and EIS Eczacibasi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sok Marketler and EIS Eczacibasi
The main advantage of trading using opposite Sok Marketler and EIS Eczacibasi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sok Marketler position performs unexpectedly, EIS Eczacibasi 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 EIS Eczacibasi will offset losses from the drop in EIS Eczacibasi's long position.Sok Marketler vs. Turk Telekomunikasyon AS | Sok Marketler vs. Tofas Turk Otomobil | Sok Marketler vs. Turkcell Iletisim Hizmetleri |
EIS Eczacibasi vs. Turk Telekomunikasyon AS | EIS Eczacibasi vs. Tofas Turk Otomobil | EIS Eczacibasi vs. Turkcell Iletisim Hizmetleri |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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