Correlation Between Yukselen Celik and Kardemir Karabuk

Can any of the company-specific risk be diversified away by investing in both Yukselen Celik and Kardemir Karabuk 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 Yukselen Celik and Kardemir Karabuk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yukselen Celik As and Kardemir Karabuk Demir, you can compare the effects of market volatilities on Yukselen Celik and Kardemir Karabuk 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 Yukselen Celik with a short position of Kardemir Karabuk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yukselen Celik and Kardemir Karabuk.

Diversification Opportunities for Yukselen Celik and Kardemir Karabuk

0.04

Correlation Coefficient

Yukselen Celik  Kardemir Karabuk

Significant diversification

The 3 months correlation between Yukselen and Kardemir is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Yukselen Celik As and Kardemir Karabuk Demir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardemir Karabuk Demir and Yukselen Celik 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 Yukselen Celik As are associated (or correlated) with Kardemir Karabuk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardemir Karabuk Demir has no effect on the direction of Yukselen Celik i.e., Yukselen Celik and Kardemir Karabuk go up and down completely randomly.

Pair Corralation between Yukselen Celik and Kardemir Karabuk

Assuming the 90 days trading horizon Yukselen Celik As is expected to under-perform the Kardemir Karabuk. In addition to that, Yukselen Celik is 1.03 times more volatile than Kardemir Karabuk Demir. It trades about -0.06 of its total potential returns per unit of risk. Kardemir Karabuk Demir is currently generating about 0.07 per unit of volatility. If you would invest  2,578  in Kardemir Karabuk Demir on September 24, 2024 and sell it today you would earn a total of  218.00  from holding Kardemir Karabuk Demir or generate 8.46% return on investment over 90 days.

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

Yukselen Celik As  vs.  Kardemir Karabuk Demir

Yukselen Celik As

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yukselen Celik As 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.

Kardemir Karabuk Demir

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kardemir Karabuk Demir are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kardemir Karabuk may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Yukselen Celik and Kardemir Karabuk

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

The idea behind Yukselen Celik As and Kardemir Karabuk Demir 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.