Correlation Between Cemtas Celik and Peker Gayrimenkul

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

Diversification Opportunities for Cemtas Celik and Peker Gayrimenkul

0.83

Correlation Coefficient

Cemtas Celik  Peker Gayrimenkul

Very poor diversification

The 3 months correlation between Cemtas and Peker is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim 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 Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of Cemtas Celik i.e., Cemtas Celik and Peker Gayrimenkul go up and down completely randomly.

Pair Corralation between Cemtas Celik and Peker Gayrimenkul

Assuming the 90 days trading horizon Cemtas Celik is expected to generate 2.52 times less return on investment than Peker Gayrimenkul. But when comparing it to its historical volatility, Cemtas Celik Makina is 3.06 times less risky than Peker Gayrimenkul. It trades about 0.25 of its potential returns per unit of risk. Peker Gayrimenkul Yatirim is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  110.00  in Peker Gayrimenkul Yatirim on October 7, 2024 and sell it today you would earn a total of  41.00  from holding Peker Gayrimenkul Yatirim or generate 37.27% return on investment over 90 days.

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

Cemtas Celik Makina  vs.  Peker Gayrimenkul Yatirim

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.

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Peker Gayrimenkul Yatirim are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Peker Gayrimenkul demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cemtas Celik and Peker Gayrimenkul

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

The idea behind Cemtas Celik Makina and Peker Gayrimenkul Yatirim 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.