Correlation Between Ayes Celik and Nuh Cimento

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

Diversification Opportunities for Ayes Celik and Nuh Cimento

-0.61

Correlation Coefficient

Ayes Celik  Nuh Cimento

Excellent diversification

The 3 months correlation between Ayes and Nuh is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Ayes Celik Hasir and Nuh Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuh Cimento 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 Nuh Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuh Cimento Sanayi has no effect on the direction of Ayes Celik i.e., Ayes Celik and Nuh Cimento go up and down completely randomly.

Pair Corralation between Ayes Celik and Nuh Cimento

Assuming the 90 days trading horizon Ayes Celik is expected to generate 27.37 times less return on investment than Nuh Cimento. But when comparing it to its historical volatility, Ayes Celik Hasir is 1.0 times less risky than Nuh Cimento. It trades about 0.01 of its potential returns per unit of risk. Nuh Cimento Sanayi is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  25,050  in Nuh Cimento Sanayi on September 15, 2024 and sell it today you would earn a total of  7,250  from holding Nuh Cimento Sanayi or generate 28.94% return on investment over 90 days.

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

Ayes Celik Hasir  vs.  Nuh Cimento Sanayi

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.

Nuh Cimento Sanayi

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Nuh Cimento Sanayi are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Nuh Cimento demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ayes Celik and Nuh Cimento

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

The idea behind Ayes Celik Hasir and Nuh Cimento 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.