Correlation Between Nasmed Ozel and AK Sigorta

Can any of the company-specific risk be diversified away by investing in both Nasmed Ozel and AK Sigorta 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 Nasmed Ozel and AK Sigorta into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Nasmed Ozel Saglik and AK Sigorta AS, you can compare the effects of market volatilities on Nasmed Ozel and AK Sigorta 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 Nasmed Ozel with a short position of AK Sigorta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasmed Ozel and AK Sigorta.

Diversification Opportunities for Nasmed Ozel and AK Sigorta

0.0

Correlation Coefficient

Nasmed Ozel  AK Sigorta

Pay attention - limited upside

The 3 months correlation between Nasmed and AKGRT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasmed Ozel Saglik and AK Sigorta AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AK Sigorta AS and Nasmed Ozel 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 Nasmed Ozel Saglik are associated (or correlated) with AK Sigorta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AK Sigorta AS has no effect on the direction of Nasmed Ozel i.e., Nasmed Ozel and AK Sigorta go up and down completely randomly.

Pair Corralation between Nasmed Ozel and AK Sigorta

If you would invest  0.00  in Nasmed Ozel Saglik on December 10, 2024 and sell it today you would earn a total of  0.00  from holding Nasmed Ozel Saglik or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

Nasmed Ozel Saglik  vs.  AK Sigorta AS

Nasmed Ozel Saglik

Risk-Adjusted Performance

Very Weak

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

AK Sigorta AS

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Nasmed Ozel and AK Sigorta

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

The idea behind Nasmed Ozel Saglik and AK Sigorta AS 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.