Correlation Between Nigbas Nigde and Cuhadaroglu Metal

Can any of the company-specific risk be diversified away by investing in both Nigbas Nigde and Cuhadaroglu Metal 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 Nigbas Nigde and Cuhadaroglu Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nigbas Nigde Beton and Cuhadaroglu Metal Sanayi, you can compare the effects of market volatilities on Nigbas Nigde and Cuhadaroglu Metal 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 Nigbas Nigde with a short position of Cuhadaroglu Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigbas Nigde and Cuhadaroglu Metal.

Diversification Opportunities for Nigbas Nigde and Cuhadaroglu Metal

-0.39

Correlation Coefficient

Nigbas Nigde  Cuhadaroglu Metal

Very good diversification

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

Pair Corralation between Nigbas Nigde and Cuhadaroglu Metal

Assuming the 90 days trading horizon Nigbas Nigde Beton is expected to under-perform the Cuhadaroglu Metal. In addition to that, Nigbas Nigde is 1.8 times more volatile than Cuhadaroglu Metal Sanayi. It trades about 0.0 of its total potential returns per unit of risk. Cuhadaroglu Metal Sanayi is currently generating about 0.09 per unit of volatility. If you would invest  2,034  in Cuhadaroglu Metal Sanayi on September 14, 2024 and sell it today you would earn a total of  58.00  from holding Cuhadaroglu Metal Sanayi or generate 2.85% return on investment over 90 days.

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

Nigbas Nigde Beton  vs.  Cuhadaroglu Metal Sanayi

Nigbas Nigde Beton

Risk-Adjusted Performance

3 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Nigbas Nigde Beton are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Nigbas Nigde demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Cuhadaroglu Metal Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Nigbas Nigde and Cuhadaroglu Metal

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

The idea behind Nigbas Nigde Beton and Cuhadaroglu Metal 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.

Check out your portfolio center.

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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.