Correlation Between Cemtas Celik and Logo Yazilim

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

Diversification Opportunities for Cemtas Celik and Logo Yazilim

0.75

Correlation Coefficient

Cemtas Celik  Logo Yazilim

Poor diversification

The 3 months correlation between Cemtas and Logo is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina and Logo Yazilim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Logo Yazilim 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 Logo Yazilim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Logo Yazilim Sanayi has no effect on the direction of Cemtas Celik i.e., Cemtas Celik and Logo Yazilim go up and down completely randomly.

Pair Corralation between Cemtas Celik and Logo Yazilim

Assuming the 90 days trading horizon Cemtas Celik Makina is expected to generate 0.65 times more return on investment than Logo Yazilim. However, Cemtas Celik Makina is 1.55 times less risky than Logo Yazilim. It trades about 0.11 of its potential returns per unit of risk. Logo Yazilim Sanayi is currently generating about 0.06 per unit of risk. If you would invest  893.00  in Cemtas Celik Makina on October 21, 2024 and sell it today you would earn a total of  33.00  from holding Cemtas Celik Makina or generate 3.7% return on investment over 90 days.

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

Cemtas Celik Makina  vs.  Logo Yazilim Sanayi

Cemtas Celik Makina

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cemtas Celik Makina are ranked lower than 13 (%) 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.

Logo Yazilim Sanayi

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Logo Yazilim Sanayi are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Logo Yazilim unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cemtas Celik and Logo Yazilim

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

The idea behind Cemtas Celik Makina and Logo Yazilim 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.