Correlation Between Nuh Cimento and Hektas Ticaret

Can any of the company-specific risk be diversified away by investing in both Nuh Cimento and Hektas Ticaret 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 Nuh Cimento and Hektas Ticaret into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nuh Cimento Sanayi and Hektas Ticaret TAS, you can compare the effects of market volatilities on Nuh Cimento and Hektas Ticaret 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 Nuh Cimento with a short position of Hektas Ticaret. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuh Cimento and Hektas Ticaret.

Diversification Opportunities for Nuh Cimento and Hektas Ticaret

0.26

Correlation Coefficient

Nuh Cimento  Hektas Ticaret

Modest diversification

The 3 months correlation between Nuh and Hektas is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Nuh Cimento Sanayi and Hektas Ticaret TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hektas Ticaret TAS and Nuh Cimento 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 Nuh Cimento Sanayi are associated (or correlated) with Hektas Ticaret. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hektas Ticaret TAS has no effect on the direction of Nuh Cimento i.e., Nuh Cimento and Hektas Ticaret go up and down completely randomly.

Pair Corralation between Nuh Cimento and Hektas Ticaret

Assuming the 90 days trading horizon Nuh Cimento Sanayi is expected to generate 1.0 times more return on investment than Hektas Ticaret. However, Nuh Cimento Sanayi is 1.0 times less risky than Hektas Ticaret. It trades about 0.06 of its potential returns per unit of risk. Hektas Ticaret TAS is currently generating about -0.1 per unit of risk. If you would invest  27,475  in Nuh Cimento Sanayi on September 22, 2024 and sell it today you would earn a total of  2,275  from holding Nuh Cimento Sanayi or generate 8.28% return on investment over 90 days.

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

Nuh Cimento Sanayi  vs.  Hektas Ticaret TAS

Nuh Cimento Sanayi

Risk-Adjusted Performance

4 of 100

Insignificant

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

Hektas Ticaret TAS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Hektas Ticaret TAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Nuh Cimento and Hektas Ticaret

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

The idea behind Nuh Cimento Sanayi and Hektas Ticaret TAS 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.