Correlation Between Kardemir Karabuk and Yukselen Celik

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

By analyzing existing cross correlation between Kardemir Karabuk Demir and Yukselen Celik As, you can compare the effects of market volatilities on Kardemir Karabuk and Yukselen Celik 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 Kardemir Karabuk with a short position of Yukselen Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kardemir Karabuk and Yukselen Celik.

Diversification Opportunities for Kardemir Karabuk and Yukselen Celik

-0.44

Correlation Coefficient

Kardemir Karabuk  Yukselen Celik

Very good diversification

The 3 months correlation between Kardemir and Yukselen is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Kardemir Karabuk Demir and Yukselen Celik As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yukselen Celik As and Kardemir Karabuk 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 Kardemir Karabuk Demir are associated (or correlated) with Yukselen Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yukselen Celik As has no effect on the direction of Kardemir Karabuk i.e., Kardemir Karabuk and Yukselen Celik go up and down completely randomly.

Pair Corralation between Kardemir Karabuk and Yukselen Celik

Assuming the 90 days trading horizon Kardemir Karabuk Demir is expected to generate 0.99 times more return on investment than Yukselen Celik. However, Kardemir Karabuk Demir is 1.01 times less risky than Yukselen Celik. It trades about 0.15 of its potential returns per unit of risk. Yukselen Celik As is currently generating about -0.07 per unit of risk. If you would invest  2,282  in Kardemir Karabuk Demir on September 12, 2024 and sell it today you would earn a total of  544.00  from holding Kardemir Karabuk Demir or generate 23.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.44%
Values	Daily Returns

Kardemir Karabuk Demir  vs.  Yukselen Celik As

Kardemir Karabuk Demir

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Kardemir Karabuk Demir are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Kardemir Karabuk demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Yukselen Celik As

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yukselen Celik As 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.

Pair Trading with Kardemir Karabuk and Yukselen Celik

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

The idea behind Kardemir Karabuk Demir and Yukselen Celik As 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.