Correlation Between Celik Halat and KOC METALURJI

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

By analyzing existing cross correlation between Celik Halat ve and KOC METALURJI, you can compare the effects of market volatilities on Celik Halat and KOC METALURJI 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 Celik Halat with a short position of KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celik Halat and KOC METALURJI.

Diversification Opportunities for Celik Halat and KOC METALURJI

-0.15

Correlation Coefficient

Celik Halat  KOC METALURJI

Good diversification

The 3 months correlation between Celik and KOC is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Celik Halat ve and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI and Celik Halat 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 Celik Halat ve are associated (or correlated) with KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Celik Halat i.e., Celik Halat and KOC METALURJI go up and down completely randomly.

Pair Corralation between Celik Halat and KOC METALURJI

Assuming the 90 days trading horizon Celik Halat ve is expected to under-perform the KOC METALURJI. But the stock apears to be less risky and, when comparing its historical volatility, Celik Halat ve is 1.08 times less risky than KOC METALURJI. The stock trades about -0.12 of its potential returns per unit of risk. The KOC METALURJI is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,474  in KOC METALURJI on October 7, 2024 and sell it today you would earn a total of  226.00  from holding KOC METALURJI or generate 15.33% return on investment over 90 days.

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

Celik Halat ve  vs.  KOC METALURJI

Celik Halat ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celik Halat ve 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 February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

KOC METALURJI

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in KOC METALURJI are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, KOC METALURJI demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Celik Halat and KOC METALURJI

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

The idea behind Celik Halat ve and KOC METALURJI 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.