Correlation Between Kontrolmatik Teknoloji and SASA Polyester

Can any of the company-specific risk be diversified away by investing in both Kontrolmatik Teknoloji and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Kontrolmatik Teknoloji and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kontrolmatik Teknoloji and SASA Polyester.

Diversification Opportunities for Kontrolmatik Teknoloji and SASA Polyester

0.13

Correlation Coefficient

Kontrolmatik Teknoloji  SASA Polyester

Average diversification

The 3 months correlation between Kontrolmatik and SASA is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Kontrolmatik Teknoloji Enerji and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester Sanayi 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Kontrolmatik Teknoloji i.e., Kontrolmatik Teknoloji and SASA Polyester go up and down completely randomly.

Pair Corralation between Kontrolmatik Teknoloji and SASA Polyester

Assuming the 90 days trading horizon Kontrolmatik Teknoloji Enerji is expected to under-perform the SASA Polyester. In addition to that, Kontrolmatik Teknoloji is 1.39 times more volatile than SASA Polyester Sanayi. It trades about -0.04 of its total potential returns per unit of risk. SASA Polyester Sanayi is currently generating about -0.04 per unit of volatility. If you would invest  433.00  in SASA Polyester Sanayi on September 25, 2024 and sell it today you would lose (28.00) from holding SASA Polyester Sanayi or give up 6.47% of portfolio value over 90 days.

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

Kontrolmatik Teknoloji Enerji  vs.  SASA Polyester Sanayi

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 uncertain 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.

SASA Polyester Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days SASA Polyester Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, SASA Polyester is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Kontrolmatik Teknoloji and SASA Polyester

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

The idea behind Kontrolmatik Teknoloji Enerji and SASA Polyester Sanayi 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.