Correlation Between Derimod Konfeksiyon and Sekerbank TAS

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

Diversification Opportunities for Derimod Konfeksiyon and Sekerbank TAS

0.56

Correlation Coefficient

Derimod Konfeksiyon  Sekerbank TAS

Very weak diversification

The 3 months correlation between Derimod and Sekerbank is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Derimod Konfeksiyon Ayakkabi and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS 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 Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Derimod Konfeksiyon i.e., Derimod Konfeksiyon and Sekerbank TAS go up and down completely randomly.

Pair Corralation between Derimod Konfeksiyon and Sekerbank TAS

Assuming the 90 days trading horizon Derimod Konfeksiyon Ayakkabi is expected to under-perform the Sekerbank TAS. In addition to that, Derimod Konfeksiyon is 1.12 times more volatile than Sekerbank TAS. It trades about -0.04 of its total potential returns per unit of risk. Sekerbank TAS is currently generating about -0.02 per unit of volatility. If you would invest  487.00  in Sekerbank TAS on December 26, 2024 and sell it today you would lose (30.00) from holding Sekerbank TAS or give up 6.16% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Derimod Konfeksiyon Ayakkabi  vs.  Sekerbank TAS

Derimod Konfeksiyon

Risk-Adjusted Performance

Very Weak

Over the last 90 days Derimod Konfeksiyon Ayakkabi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Sekerbank TAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sekerbank TAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Sekerbank TAS is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Derimod Konfeksiyon and Sekerbank TAS

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

The idea behind Derimod Konfeksiyon Ayakkabi and Sekerbank TAS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.