Correlation Between Derimod Konfeksiyon and Cemtas Celik

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

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

Diversification Opportunities for Derimod Konfeksiyon and Cemtas Celik

0.72

Correlation Coefficient

Derimod Konfeksiyon  Cemtas Celik

Poor diversification

The 3 months correlation between Derimod and Cemtas is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Derimod Konfeksiyon Ayakkabi and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina and Derimod Konfeksiyon 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 Derimod Konfeksiyon Ayakkabi are associated (or correlated) with Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Derimod Konfeksiyon i.e., Derimod Konfeksiyon and Cemtas Celik go up and down completely randomly.

Pair Corralation between Derimod Konfeksiyon and Cemtas Celik

Assuming the 90 days trading horizon Derimod Konfeksiyon Ayakkabi is expected to generate 0.91 times more return on investment than Cemtas Celik. However, Derimod Konfeksiyon Ayakkabi is 1.09 times less risky than Cemtas Celik. It trades about 0.11 of its potential returns per unit of risk. Cemtas Celik Makina is currently generating about -0.03 per unit of risk. If you would invest  710.00  in Derimod Konfeksiyon Ayakkabi on October 5, 2024 and sell it today you would earn a total of  3,268  from holding Derimod Konfeksiyon Ayakkabi or generate 460.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.79%
Values	Daily Returns

Derimod Konfeksiyon Ayakkabi  vs.  Cemtas Celik Makina

Derimod Konfeksiyon

Risk-Adjusted Performance

11 of 100

Good

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

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.

Pair Trading with Derimod Konfeksiyon and Cemtas Celik

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

The idea behind Derimod Konfeksiyon Ayakkabi and Cemtas Celik Makina 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.