Correlation Between Alkim Kagit and Silverline Endustri

Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Silverline Endustri 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 Silverline Endustri 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 Silverline Endustri ve, you can compare the effects of market volatilities on Alkim Kagit and Silverline Endustri 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 Silverline Endustri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Silverline Endustri.

Diversification Opportunities for Alkim Kagit and Silverline Endustri

0.0

Correlation Coefficient

Alkim Kagit  Silverline Endustri

Pay attention - limited upside

The 3 months correlation between Alkim and Silverline is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Silverline Endustri ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silverline Endustri 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 Silverline Endustri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silverline Endustri has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Silverline Endustri go up and down completely randomly.

Pair Corralation between Alkim Kagit and Silverline Endustri

Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to generate 2.55 times more return on investment than Silverline Endustri. However, Alkim Kagit is 2.55 times more volatile than Silverline Endustri ve. It trades about 0.24 of its potential returns per unit of risk. Silverline Endustri ve is currently generating about -0.24 per unit of risk. If you would invest  763.00  in Alkim Kagit Sanayi on October 11, 2024 and sell it today you would earn a total of  162.00  from holding Alkim Kagit Sanayi or generate 21.23% return on investment over 90 days.

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

Alkim Kagit Sanayi  vs.  Silverline Endustri ve

Alkim Kagit Sanayi

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Alkim Kagit Sanayi are ranked lower than 17 (%) 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.

Silverline Endustri

Risk-Adjusted Performance

4 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Silverline Endustri ve are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Silverline Endustri may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Alkim Kagit and Silverline Endustri

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

The idea behind Alkim Kagit Sanayi and Silverline Endustri ve 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.