Correlation Between Ayes Celik and Alarko Carrier

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

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

Diversification Opportunities for Ayes Celik and Alarko Carrier

-0.22

Correlation Coefficient

Ayes Celik  Alarko Carrier

Very good diversification

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

Pair Corralation between Ayes Celik and Alarko Carrier

Assuming the 90 days trading horizon Ayes Celik is expected to generate 1.8 times less return on investment than Alarko Carrier. But when comparing it to its historical volatility, Ayes Celik Hasir is 1.17 times less risky than Alarko Carrier. It trades about 0.05 of its potential returns per unit of risk. Alarko Carrier Sanayi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  101,500  in Alarko Carrier Sanayi on December 29, 2024 and sell it today you would earn a total of  12,200  from holding Alarko Carrier Sanayi or generate 12.02% return on investment over 90 days.

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

Ayes Celik Hasir  vs.  Alarko Carrier Sanayi

Ayes Celik Hasir

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ayes Celik Hasir are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ayes Celik may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Alarko Carrier Sanayi

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Alarko Carrier Sanayi are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Alarko Carrier demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ayes Celik and Alarko Carrier

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

The idea behind Ayes Celik Hasir and Alarko Carrier 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.