Correlation Between Alkim Kagit and Peker Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Peker Gayrimenkul 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 Alkim Kagit and Peker Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Alkim Kagit Sanayi and Peker Gayrimenkul Yatirim, you can compare the effects of market volatilities on Alkim Kagit and Peker Gayrimenkul 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 Alkim Kagit with a short position of Peker Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Peker Gayrimenkul.

Diversification Opportunities for Alkim Kagit and Peker Gayrimenkul

0.81

Correlation Coefficient

Alkim Kagit  Peker Gayrimenkul

Very poor diversification

The 3 months correlation between Alkim and Peker is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim and Alkim Kagit 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 Alkim Kagit Sanayi are associated (or correlated) with Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Peker Gayrimenkul go up and down completely randomly.

Pair Corralation between Alkim Kagit and Peker Gayrimenkul

Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to generate 0.88 times more return on investment than Peker Gayrimenkul. However, Alkim Kagit Sanayi is 1.13 times less risky than Peker Gayrimenkul. It trades about 0.24 of its potential returns per unit of risk. Peker Gayrimenkul Yatirim is currently generating about 0.14 per unit of risk. If you would invest  627.00  in Alkim Kagit Sanayi on October 8, 2024 and sell it today you would earn a total of  333.00  from holding Alkim Kagit Sanayi or generate 53.11% return on investment over 90 days.

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

Alkim Kagit Sanayi  vs.  Peker Gayrimenkul Yatirim

Alkim Kagit Sanayi

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alkim Kagit Sanayi are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Alkim Kagit unveiled solid returns over the last few months and may actually be approaching a breakup point.

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Peker Gayrimenkul Yatirim are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Peker Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alkim Kagit and Peker Gayrimenkul

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

The idea behind Alkim Kagit Sanayi and Peker Gayrimenkul Yatirim 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.