Correlation Between SASA Polyester and Hektas Ticaret

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

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

Diversification Opportunities for SASA Polyester and Hektas Ticaret

0.8

Correlation Coefficient

SASA Polyester  Hektas Ticaret

Very poor diversification

The 3 months correlation between SASA and Hektas is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester 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 SASA Polyester 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 SASA Polyester 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 SASA Polyester i.e., SASA Polyester and Hektas Ticaret go up and down completely randomly.

Pair Corralation between SASA Polyester and Hektas Ticaret

Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the Hektas Ticaret. But the stock apears to be less risky and, when comparing its historical volatility, SASA Polyester Sanayi is 1.35 times less risky than Hektas Ticaret. The stock trades about -0.11 of its potential returns per unit of risk. The Hektas Ticaret TAS is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  430.00  in Hektas Ticaret TAS on September 4, 2024 and sell it today you would lose (24.00) from holding Hektas Ticaret TAS or give up 5.58% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

SASA Polyester Sanayi  vs.  Hektas Ticaret TAS

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 inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 fairly strong forward indicators, Hektas Ticaret is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with SASA Polyester and Hektas Ticaret

The main advantage of trading using opposite SASA Polyester and Hektas Ticaret positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester 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 SASA Polyester 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.