Correlation Between Kocaer Celik and Flap Kongre

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

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

Diversification Opportunities for Kocaer Celik and Flap Kongre

-0.39

Correlation Coefficient

Kocaer Celik  Flap Kongre

Very good diversification

The 3 months correlation between Kocaer and Flap is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik Sanayi and Flap Kongre Toplanti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flap Kongre Toplanti and Kocaer 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 Kocaer Celik Sanayi are associated (or correlated) with Flap Kongre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flap Kongre Toplanti has no effect on the direction of Kocaer Celik i.e., Kocaer Celik and Flap Kongre go up and down completely randomly.

Pair Corralation between Kocaer Celik and Flap Kongre

Assuming the 90 days trading horizon Kocaer Celik Sanayi is expected to generate 0.72 times more return on investment than Flap Kongre. However, Kocaer Celik Sanayi is 1.39 times less risky than Flap Kongre. It trades about 0.14 of its potential returns per unit of risk. Flap Kongre Toplanti is currently generating about 0.06 per unit of risk. If you would invest  1,341  in Kocaer Celik Sanayi on September 22, 2024 and sell it today you would earn a total of  79.00  from holding Kocaer Celik Sanayi or generate 5.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Kocaer Celik Sanayi  vs.  Flap Kongre Toplanti

Kocaer Celik Sanayi

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kocaer Celik Sanayi are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kocaer Celik may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Kocaer Celik and Flap Kongre

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

The idea behind Kocaer Celik Sanayi and Flap Kongre Toplanti 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.