Correlation Between Cemtas Celik and Akcansa Cimento

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

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

Diversification Opportunities for Cemtas Celik and Akcansa Cimento

0.91

Correlation Coefficient

Cemtas Celik  Akcansa Cimento

Almost no diversification

The 3 months correlation between Cemtas and Akcansa is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and Cemtas 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 Cemtas Celik Makina are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of Cemtas Celik i.e., Cemtas Celik and Akcansa Cimento go up and down completely randomly.

Pair Corralation between Cemtas Celik and Akcansa Cimento

Assuming the 90 days trading horizon Cemtas Celik Makina is expected to generate 5.57 times more return on investment than Akcansa Cimento. However, Cemtas Celik is 5.57 times more volatile than Akcansa Cimento Sanayi. It trades about 0.03 of its potential returns per unit of risk. Akcansa Cimento Sanayi is currently generating about 0.1 per unit of risk. If you would invest  1,124  in Cemtas Celik Makina on October 10, 2024 and sell it today you would lose (182.00) from holding Cemtas Celik Makina or give up 16.19% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	99.8%
Values	Daily Returns

Cemtas Celik Makina  vs.  Akcansa Cimento Sanayi

Cemtas Celik Makina

Risk-Adjusted Performance

12 of 100

Good

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

Akcansa Cimento Sanayi

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Akcansa Cimento Sanayi are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Akcansa Cimento demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cemtas Celik and Akcansa Cimento

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

The idea behind Cemtas Celik Makina and Akcansa 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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.