Correlation Between Bursa Cimento and Oyak Cimento

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

Diversification Opportunities for Bursa Cimento and Oyak Cimento

-0.63

Correlation Coefficient

Bursa Cimento  Oyak Cimento

Excellent diversification

The 3 months correlation between Bursa and Oyak is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bursa Cimento Fabrikasi and Oyak Cimento Fabrikalari in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oyak Cimento Fabrikalari 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 Oyak Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oyak Cimento Fabrikalari has no effect on the direction of Bursa Cimento i.e., Bursa Cimento and Oyak Cimento go up and down completely randomly.

Pair Corralation between Bursa Cimento and Oyak Cimento

Assuming the 90 days trading horizon Bursa Cimento Fabrikasi is expected to under-perform the Oyak Cimento. But the stock apears to be less risky and, when comparing its historical volatility, Bursa Cimento Fabrikasi is 1.11 times less risky than Oyak Cimento. The stock trades about -0.13 of its potential returns per unit of risk. The Oyak Cimento Fabrikalari is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  2,378  in Oyak Cimento Fabrikalari on December 27, 2024 and sell it today you would earn a total of  764.00  from holding Oyak Cimento Fabrikalari or generate 32.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Bursa Cimento Fabrikasi  vs.  Oyak Cimento Fabrikalari

Bursa Cimento Fabrikasi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bursa Cimento Fabrikasi 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.

Oyak Cimento Fabrikalari

Risk-Adjusted Performance

Good

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

Pair Trading with Bursa Cimento and Oyak Cimento

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

The idea behind Bursa Cimento Fabrikasi and Oyak Cimento Fabrikalari 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.