Correlation Between Sok Marketler and Kustur Kusadasi

Can any of the company-specific risk be diversified away by investing in both Sok Marketler and Kustur Kusadasi 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 Sok Marketler and Kustur Kusadasi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sok Marketler Ticaret and Kustur Kusadasi Turizm, you can compare the effects of market volatilities on Sok Marketler and Kustur Kusadasi 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 Sok Marketler with a short position of Kustur Kusadasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sok Marketler and Kustur Kusadasi.

Diversification Opportunities for Sok Marketler and Kustur Kusadasi

-0.15

Correlation Coefficient

Sok Marketler  Kustur Kusadasi

Good diversification

The 3 months correlation between Sok and Kustur is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Sok Marketler Ticaret and Kustur Kusadasi Turizm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kustur Kusadasi Turizm and Sok Marketler 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 Sok Marketler Ticaret are associated (or correlated) with Kustur Kusadasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kustur Kusadasi Turizm has no effect on the direction of Sok Marketler i.e., Sok Marketler and Kustur Kusadasi go up and down completely randomly.

Pair Corralation between Sok Marketler and Kustur Kusadasi

Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to generate 0.27 times more return on investment than Kustur Kusadasi. However, Sok Marketler Ticaret is 3.72 times less risky than Kustur Kusadasi. It trades about 0.01 of its potential returns per unit of risk. Kustur Kusadasi Turizm is currently generating about -0.23 per unit of risk. If you would invest  3,988  in Sok Marketler Ticaret on September 23, 2024 and sell it today you would earn a total of  4.00  from holding Sok Marketler Ticaret or generate 0.1% return on investment over 90 days.

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

Sok Marketler Ticaret  vs.  Kustur Kusadasi Turizm

Sok Marketler Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sok Marketler Ticaret 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.

Kustur Kusadasi Turizm

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Kustur Kusadasi Turizm 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.

Pair Trading with Sok Marketler and Kustur Kusadasi

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

The idea behind Sok Marketler Ticaret and Kustur Kusadasi Turizm 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.

Check out your portfolio center.

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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.