Correlation Between Cemtas Celik and Turkiye Kalkinma

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

By analyzing existing cross correlation between Cemtas Celik Makina and Turkiye Kalkinma Bankasi, you can compare the effects of market volatilities on Cemtas Celik and Turkiye Kalkinma 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 Cemtas Celik with a short position of Turkiye Kalkinma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtas Celik and Turkiye Kalkinma.

Diversification Opportunities for Cemtas Celik and Turkiye Kalkinma

0.73

Correlation Coefficient

Cemtas Celik  Turkiye Kalkinma

Poor diversification

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

Pair Corralation between Cemtas Celik and Turkiye Kalkinma

Assuming the 90 days trading horizon Cemtas Celik Makina is expected to generate 0.9 times more return on investment than Turkiye Kalkinma. However, Cemtas Celik Makina is 1.11 times less risky than Turkiye Kalkinma. It trades about -0.03 of its potential returns per unit of risk. Turkiye Kalkinma Bankasi is currently generating about -0.07 per unit of risk. If you would invest  944.00  in Cemtas Celik Makina on September 14, 2024 and sell it today you would lose (35.00) from holding Cemtas Celik Makina or give up 3.71% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Cemtas Celik Makina  vs.  Turkiye Kalkinma Bankasi

Cemtas Celik Makina

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Cemtas Celik Makina has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Cemtas Celik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Turkiye Kalkinma Bankasi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Kalkinma Bankasi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Cemtas Celik and Turkiye Kalkinma

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

The idea behind Cemtas Celik Makina and Turkiye Kalkinma Bankasi 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.