Correlation Between Alkim Kagit and Kent Gida

Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Alkim Kagit and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Kent Gida.

Diversification Opportunities for Alkim Kagit and Kent Gida

0.86

Correlation Coefficient

Alkim Kagit  Kent Gida

Very poor diversification

The 3 months correlation between Alkim and Kent is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Kent Gida go up and down completely randomly.

Pair Corralation between Alkim Kagit and Kent Gida

Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to generate 0.73 times more return on investment than Kent Gida. However, Alkim Kagit Sanayi is 1.37 times less risky than Kent Gida. It trades about 0.14 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.08 per unit of risk. If you would invest  678.00  in Alkim Kagit Sanayi on September 22, 2024 and sell it today you would earn a total of  162.00  from holding Alkim Kagit Sanayi or generate 23.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.46%
Values	Daily Returns

Alkim Kagit Sanayi  vs.  Kent Gida Maddeleri

Alkim Kagit Sanayi

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Alkim Kagit Sanayi are ranked lower than 10 (%) 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.

Kent Gida Maddeleri

Risk-Adjusted Performance

5 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kent Gida Maddeleri are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Kent Gida unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alkim Kagit and Kent Gida

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

The idea behind Alkim Kagit Sanayi and Kent Gida Maddeleri 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.