Correlation Between Alkim Kagit and Ayes Celik

Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Ayes Celik 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 Alkim Kagit and Ayes Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alkim Kagit Sanayi and Ayes Celik Hasir, you can compare the effects of market volatilities on Alkim Kagit and Ayes Celik 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 Alkim Kagit with a short position of Ayes Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Ayes Celik.

Diversification Opportunities for Alkim Kagit and Ayes Celik

-0.73

Correlation Coefficient

Alkim Kagit  Ayes Celik

Pay attention - limited upside

The 3 months correlation between Alkim and Ayes is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Ayes Celik Hasir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayes Celik Hasir and Alkim Kagit 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 Alkim Kagit Sanayi are associated (or correlated) with Ayes Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayes Celik Hasir has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Ayes Celik go up and down completely randomly.

Pair Corralation between Alkim Kagit and Ayes Celik

Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to generate 1.15 times more return on investment than Ayes Celik. However, Alkim Kagit is 1.15 times more volatile than Ayes Celik Hasir. It trades about 0.2 of its potential returns per unit of risk. Ayes Celik Hasir is currently generating about -0.05 per unit of risk. If you would invest  631.00  in Alkim Kagit Sanayi on October 1, 2024 and sell it today you would earn a total of  244.00  from holding Alkim Kagit Sanayi or generate 38.67% return on investment over 90 days.

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

Alkim Kagit Sanayi  vs.  Ayes Celik Hasir

Alkim Kagit Sanayi

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alkim Kagit Sanayi are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Alkim Kagit unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ayes Celik Hasir

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ayes Celik Hasir has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Alkim Kagit and Ayes Celik

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

The idea behind Alkim Kagit Sanayi and Ayes Celik Hasir 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.