Correlation Between Cimsa Cimento and Yibitas Yozgat

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

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

Diversification Opportunities for Cimsa Cimento and Yibitas Yozgat

-0.28

Correlation Coefficient

Cimsa Cimento  Yibitas Yozgat

Very good diversification

The 3 months correlation between Cimsa and Yibitas is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Cimsa Cimento Sanayi and Yibitas Yozgat Isci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yibitas Yozgat Isci and Cimsa 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 Cimsa Cimento Sanayi are associated (or correlated) with Yibitas Yozgat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yibitas Yozgat Isci has no effect on the direction of Cimsa Cimento i.e., Cimsa Cimento and Yibitas Yozgat go up and down completely randomly.

Pair Corralation between Cimsa Cimento and Yibitas Yozgat

Assuming the 90 days trading horizon Cimsa Cimento Sanayi is expected to generate 0.95 times more return on investment than Yibitas Yozgat. However, Cimsa Cimento Sanayi is 1.06 times less risky than Yibitas Yozgat. It trades about 0.13 of its potential returns per unit of risk. Yibitas Yozgat Isci is currently generating about -0.07 per unit of risk. If you would invest  3,670  in Cimsa Cimento Sanayi on September 23, 2024 and sell it today you would earn a total of  806.00  from holding Cimsa Cimento Sanayi or generate 21.96% return on investment over 90 days.

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

Cimsa Cimento Sanayi  vs.  Yibitas Yozgat Isci

Cimsa Cimento Sanayi

Risk-Adjusted Performance

9 of 100

OK

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

Yibitas Yozgat Isci

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Yibitas Yozgat Isci 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 January 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Cimsa Cimento and Yibitas Yozgat

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

The idea behind Cimsa Cimento Sanayi and Yibitas Yozgat Isci 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.