Correlation Between Senkron Guvenlik and Ekiz Kimya

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

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

Diversification Opportunities for Senkron Guvenlik and Ekiz Kimya

0.67

Correlation Coefficient

Senkron Guvenlik  Ekiz Kimya

Poor diversification

The 3 months correlation between Senkron and Ekiz is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Senkron Guvenlik 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 Senkron Guvenlik 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 Senkron Guvenlik 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 Senkron Guvenlik i.e., Senkron Guvenlik and Ekiz Kimya go up and down completely randomly.

Pair Corralation between Senkron Guvenlik and Ekiz Kimya

Assuming the 90 days trading horizon Senkron Guvenlik ve is expected to generate 1.2 times more return on investment than Ekiz Kimya. However, Senkron Guvenlik is 1.2 times more volatile than Ekiz Kimya Sanayi. It trades about -0.04 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.05 per unit of risk. If you would invest  5,620  in Senkron Guvenlik ve on September 22, 2024 and sell it today you would lose (550.00) from holding Senkron Guvenlik ve or give up 9.79% of portfolio value over 90 days.

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

Senkron Guvenlik ve  vs.  Ekiz Kimya Sanayi

Senkron Guvenlik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Senkron Guvenlik ve has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

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 Senkron Guvenlik and Ekiz Kimya

The main advantage of trading using opposite Senkron Guvenlik and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Senkron Guvenlik 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 Senkron Guvenlik 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.