Correlation Between Ayes Celik and Koza Altin

Can any of the company-specific risk be diversified away by investing in both Ayes Celik and Koza Altin 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 Koza Altin 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 Koza Altin Isletmeleri, you can compare the effects of market volatilities on Ayes Celik and Koza Altin 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 Koza Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ayes Celik and Koza Altin.

Diversification Opportunities for Ayes Celik and Koza Altin

-0.3

Correlation Coefficient

Ayes Celik  Koza Altin

Very good diversification

The 3 months correlation between Ayes and Koza is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Ayes Celik Hasir and Koza Altin Isletmeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Altin Isletmeleri 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 Koza Altin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Altin Isletmeleri has no effect on the direction of Ayes Celik i.e., Ayes Celik and Koza Altin go up and down completely randomly.

Pair Corralation between Ayes Celik and Koza Altin

Assuming the 90 days trading horizon Ayes Celik Hasir is expected to under-perform the Koza Altin. But the stock apears to be less risky and, when comparing its historical volatility, Ayes Celik Hasir is 1.02 times less risky than Koza Altin. The stock trades about -0.03 of its potential returns per unit of risk. The Koza Altin Isletmeleri is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,354  in Koza Altin Isletmeleri on September 13, 2024 and sell it today you would lose (24.00) from holding Koza Altin Isletmeleri or give up 1.02% of portfolio value over 90 days.

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

Ayes Celik Hasir  vs.  Koza Altin Isletmeleri

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.

Koza Altin Isletmeleri

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Ayes Celik and Koza Altin

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

The idea behind Ayes Celik Hasir and Koza Altin Isletmeleri 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.