Correlation Between Alarko Carrier and Ayes Celik

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

By analyzing existing cross correlation between Alarko Carrier Sanayi and Ayes Celik Hasir, you can compare the effects of market volatilities on Alarko Carrier and Ayes Celik 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 Alarko Carrier with a short position of Ayes Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarko Carrier and Ayes Celik.

Diversification Opportunities for Alarko Carrier and Ayes Celik

-0.22

Correlation Coefficient

Alarko Carrier  Ayes Celik

Very good diversification

The 3 months correlation between Alarko and Ayes is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Alarko Carrier Sanayi and Ayes Celik Hasir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayes Celik Hasir and Alarko Carrier 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 Alarko Carrier Sanayi are associated (or correlated) with Ayes Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayes Celik Hasir has no effect on the direction of Alarko Carrier i.e., Alarko Carrier and Ayes Celik go up and down completely randomly.

Pair Corralation between Alarko Carrier and Ayes Celik

Assuming the 90 days trading horizon Alarko Carrier Sanayi is expected to under-perform the Ayes Celik. But the stock apears to be less risky and, when comparing its historical volatility, Alarko Carrier Sanayi is 1.34 times less risky than Ayes Celik. The stock trades about -0.03 of its potential returns per unit of risk. The Ayes Celik Hasir is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  882.00  in Ayes Celik Hasir on September 14, 2024 and sell it today you would lose (52.00) from holding Ayes Celik Hasir or give up 5.9% of portfolio value over 90 days.

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

Alarko Carrier Sanayi  vs.  Ayes Celik Hasir

Alarko Carrier Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alarko Carrier Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Alarko Carrier is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Ayes Celik Hasir

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ayes Celik Hasir has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ayes Celik is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Alarko Carrier and Ayes Celik

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

The idea behind Alarko Carrier Sanayi and Ayes Celik Hasir 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.