Correlation Between Penta Teknoloji and Prizma Pres

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

By analyzing existing cross correlation between Penta Teknoloji Urunleri and Prizma Pres Matbaacilik, you can compare the effects of market volatilities on Penta Teknoloji and Prizma Pres 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 Penta Teknoloji with a short position of Prizma Pres. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penta Teknoloji and Prizma Pres.

Diversification Opportunities for Penta Teknoloji and Prizma Pres

-0.55

Correlation Coefficient

Penta Teknoloji  Prizma Pres

Excellent diversification

The 3 months correlation between Penta and Prizma is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Penta Teknoloji Urunleri and Prizma Pres Matbaacilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prizma Pres Matbaacilik and Penta 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 Penta Teknoloji Urunleri are associated (or correlated) with Prizma Pres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prizma Pres Matbaacilik has no effect on the direction of Penta Teknoloji i.e., Penta Teknoloji and Prizma Pres go up and down completely randomly.

Pair Corralation between Penta Teknoloji and Prizma Pres

Assuming the 90 days trading horizon Penta Teknoloji Urunleri is expected to generate 0.57 times more return on investment than Prizma Pres. However, Penta Teknoloji Urunleri is 1.75 times less risky than Prizma Pres. It trades about 0.03 of its potential returns per unit of risk. Prizma Pres Matbaacilik is currently generating about -0.21 per unit of risk. If you would invest  1,505  in Penta Teknoloji Urunleri on September 22, 2024 and sell it today you would earn a total of  40.00  from holding Penta Teknoloji Urunleri or generate 2.66% return on investment over 90 days.

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

Penta Teknoloji Urunleri  vs.  Prizma Pres Matbaacilik

Penta Teknoloji Urunleri

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Penta Teknoloji Urunleri are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Penta Teknoloji is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Prizma Pres Matbaacilik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Prizma Pres Matbaacilik 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 Penta Teknoloji and Prizma Pres

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

The idea behind Penta Teknoloji Urunleri and Prizma Pres Matbaacilik 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 Transaction History module to view history of all your transactions and understand their impact on performance.