Correlation Between Kontrolmatik Teknoloji and Pergamon Status

Can any of the company-specific risk be diversified away by investing in both Kontrolmatik Teknoloji and Pergamon Status 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 Kontrolmatik Teknoloji and Pergamon Status into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kontrolmatik Teknoloji Enerji and Pergamon Status Dis, you can compare the effects of market volatilities on Kontrolmatik Teknoloji and Pergamon Status 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 Kontrolmatik Teknoloji with a short position of Pergamon Status. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontrolmatik Teknoloji and Pergamon Status.

Diversification Opportunities for Kontrolmatik Teknoloji and Pergamon Status

-0.74

Correlation Coefficient

Kontrolmatik Teknoloji  Pergamon Status

Pay attention - limited upside

The 3 months correlation between Kontrolmatik and Pergamon is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Kontrolmatik Teknoloji Enerji and Pergamon Status Dis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pergamon Status Dis and Kontrolmatik Teknoloji 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 Kontrolmatik Teknoloji Enerji are associated (or correlated) with Pergamon Status. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pergamon Status Dis has no effect on the direction of Kontrolmatik Teknoloji i.e., Kontrolmatik Teknoloji and Pergamon Status go up and down completely randomly.

Pair Corralation between Kontrolmatik Teknoloji and Pergamon Status

Assuming the 90 days trading horizon Kontrolmatik Teknoloji Enerji is expected to under-perform the Pergamon Status. But the stock apears to be less risky and, when comparing its historical volatility, Kontrolmatik Teknoloji Enerji is 1.35 times less risky than Pergamon Status. The stock trades about -0.04 of its potential returns per unit of risk. The Pergamon Status Dis is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  9,190  in Pergamon Status Dis on September 23, 2024 and sell it today you would lose (745.00) from holding Pergamon Status Dis or give up 8.11% of portfolio value over 90 days.

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

Kontrolmatik Teknoloji Enerji  vs.  Pergamon Status Dis

Kontrolmatik Teknoloji

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kontrolmatik Teknoloji Enerji has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent 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.

Pergamon Status Dis

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Kontrolmatik Teknoloji and Pergamon Status

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

The idea behind Kontrolmatik Teknoloji Enerji and Pergamon Status Dis 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.