Correlation Between Turkiye Sise and Ekiz Kimya

Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Ekiz Kimya 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 Turkiye Sise and Ekiz Kimya into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Sise ve and Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Turkiye Sise and Ekiz Kimya 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 Turkiye Sise with a short position of Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Ekiz Kimya.

Diversification Opportunities for Turkiye Sise and Ekiz Kimya

0.5

Correlation Coefficient

Turkiye Sise  Ekiz Kimya

Very weak diversification

The 3 months correlation between Turkiye and Ekiz is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Ekiz Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekiz Kimya Sanayi and Turkiye Sise 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 Turkiye Sise ve are associated (or correlated) with Ekiz Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekiz Kimya Sanayi has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Ekiz Kimya go up and down completely randomly.

Pair Corralation between Turkiye Sise and Ekiz Kimya

Assuming the 90 days trading horizon Turkiye Sise ve is expected to generate 0.77 times more return on investment than Ekiz Kimya. However, Turkiye Sise ve is 1.29 times less risky than Ekiz Kimya. It trades about 0.04 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.08 per unit of risk. If you would invest  4,082  in Turkiye Sise ve on September 14, 2024 and sell it today you would earn a total of  150.00  from holding Turkiye Sise ve or generate 3.67% return on investment over 90 days.

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

Turkiye Sise ve  vs.  Ekiz Kimya Sanayi

Turkiye Sise ve

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sise ve are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Turkiye Sise is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Ekiz Kimya Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ekiz Kimya Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Turkiye Sise and Ekiz Kimya

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

The idea behind Turkiye Sise ve and Ekiz Kimya 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.