Correlation Between Cuhadaroglu Metal and Flap Kongre

Can any of the company-specific risk be diversified away by investing in both Cuhadaroglu Metal and Flap Kongre 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 Cuhadaroglu Metal and Flap Kongre into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Flap Kongre Toplanti, you can compare the effects of market volatilities on Cuhadaroglu Metal and Flap Kongre 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 Cuhadaroglu Metal with a short position of Flap Kongre. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Flap Kongre.

Diversification Opportunities for Cuhadaroglu Metal and Flap Kongre

0.84

Correlation Coefficient

Cuhadaroglu Metal  Flap Kongre

Very poor diversification

The 3 months correlation between Cuhadaroglu and Flap is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Flap Kongre Toplanti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flap Kongre Toplanti and Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi are associated (or correlated) with Flap Kongre. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flap Kongre Toplanti has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Flap Kongre go up and down completely randomly.

Pair Corralation between Cuhadaroglu Metal and Flap Kongre

Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to under-perform the Flap Kongre. But the stock apears to be less risky and, when comparing its historical volatility, Cuhadaroglu Metal Sanayi is 1.06 times less risky than Flap Kongre. The stock trades about -0.17 of its potential returns per unit of risk. The Flap Kongre Toplanti is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  899.00  in Flap Kongre Toplanti on December 24, 2024 and sell it today you would lose (200.00) from holding Flap Kongre Toplanti or give up 22.25% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.46%
Values	Daily Returns

Cuhadaroglu Metal Sanayi  vs.  Flap Kongre Toplanti

Cuhadaroglu Metal Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cuhadaroglu Metal Sanayi 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Flap Kongre Toplanti

Risk-Adjusted Performance

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Cuhadaroglu Metal and Flap Kongre

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

The idea behind Cuhadaroglu Metal Sanayi and Flap Kongre Toplanti 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.