Correlation Between Bursa Cimento and Konya Cimento

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

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

Diversification Opportunities for Bursa Cimento and Konya Cimento

0.0

Correlation Coefficient

Bursa Cimento  Konya Cimento

Pay attention - limited upside

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

Pair Corralation between Bursa Cimento and Konya Cimento

If you would invest  834.00  in Bursa Cimento Fabrikasi on October 11, 2024 and sell it today you would earn a total of  41.00  from holding Bursa Cimento Fabrikasi or generate 4.92% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Bursa Cimento Fabrikasi  vs.  Konya Cimento Sanayi

Bursa Cimento Fabrikasi

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bursa Cimento Fabrikasi are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Bursa Cimento demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Konya Cimento Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Bursa Cimento and Konya Cimento

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

The idea behind Bursa Cimento Fabrikasi and Konya 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.