Correlation Between Astar and Soktas Tekstil

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

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

Diversification Opportunities for Astar and Soktas Tekstil

0.71

Correlation Coefficient

Astar  Soktas Tekstil

Poor diversification

The 3 months correlation between Astar and Soktas is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Soktas Tekstil Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soktas Tekstil Sanayi and Astar 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 Astar are associated (or correlated) with Soktas Tekstil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soktas Tekstil Sanayi has no effect on the direction of Astar i.e., Astar and Soktas Tekstil go up and down completely randomly.

Pair Corralation between Astar and Soktas Tekstil

Assuming the 90 days trading horizon Astar is expected to under-perform the Soktas Tekstil. In addition to that, Astar is 1.87 times more volatile than Soktas Tekstil Sanayi. It trades about -0.19 of its total potential returns per unit of risk. Soktas Tekstil Sanayi is currently generating about -0.1 per unit of volatility. If you would invest  511.00  in Soktas Tekstil Sanayi on December 21, 2024 and sell it today you would lose (91.00) from holding Soktas Tekstil Sanayi or give up 17.81% of portfolio value over 90 days.

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

Astar  vs.  Soktas Tekstil Sanayi

Astar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Astar has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Astar shareholders.

Soktas Tekstil Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Soktas Tekstil 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Astar and Soktas Tekstil

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

The idea behind Astar and Soktas Tekstil 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.