Correlation Between Turkiye Sinai and Seyitler Kimya

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

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

Diversification Opportunities for Turkiye Sinai and Seyitler Kimya

-0.67

Correlation Coefficient

Turkiye Sinai  Seyitler Kimya

Excellent diversification

The 3 months correlation between Turkiye and Seyitler is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sinai Kalkinma and Seyitler Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Seyitler Kimya Sanayi and Turkiye Sinai 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 Sinai Kalkinma are associated (or correlated) with Seyitler Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Seyitler Kimya Sanayi has no effect on the direction of Turkiye Sinai i.e., Turkiye Sinai and Seyitler Kimya go up and down completely randomly.

Pair Corralation between Turkiye Sinai and Seyitler Kimya

Assuming the 90 days trading horizon Turkiye Sinai Kalkinma is expected to generate 0.59 times more return on investment than Seyitler Kimya. However, Turkiye Sinai Kalkinma is 1.69 times less risky than Seyitler Kimya. It trades about 0.03 of its potential returns per unit of risk. Seyitler Kimya Sanayi is currently generating about -0.16 per unit of risk. If you would invest  1,182  in Turkiye Sinai Kalkinma on September 22, 2024 and sell it today you would earn a total of  33.00  from holding Turkiye Sinai Kalkinma or generate 2.79% return on investment over 90 days.

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

Turkiye Sinai Kalkinma  vs.  Seyitler Kimya Sanayi

Turkiye Sinai Kalkinma

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sinai Kalkinma are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Turkiye Sinai is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Seyitler Kimya Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seyitler Kimya Sanayi 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 Turkiye Sinai and Seyitler Kimya

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

The idea behind Turkiye Sinai Kalkinma and Seyitler 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..