Correlation Between Nasmed Ozel and Gubre Fabrikalari

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

Diversification Opportunities for Nasmed Ozel and Gubre Fabrikalari

0.73

Correlation Coefficient

Nasmed Ozel  Gubre Fabrikalari

Poor diversification

The 3 months correlation between Nasmed and Gubre is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Nasmed Ozel Saglik and Gubre Fabrikalari TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gubre Fabrikalari TAS 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 Gubre Fabrikalari. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gubre Fabrikalari TAS has no effect on the direction of Nasmed Ozel i.e., Nasmed Ozel and Gubre Fabrikalari go up and down completely randomly.

Pair Corralation between Nasmed Ozel and Gubre Fabrikalari

Assuming the 90 days trading horizon Nasmed Ozel Saglik is expected to generate 0.95 times more return on investment than Gubre Fabrikalari. However, Nasmed Ozel Saglik is 1.05 times less risky than Gubre Fabrikalari. It trades about 0.05 of its potential returns per unit of risk. Gubre Fabrikalari TAS is currently generating about 0.0 per unit of risk. If you would invest  1,564  in Nasmed Ozel Saglik on October 13, 2024 and sell it today you would earn a total of  956.00  from holding Nasmed Ozel Saglik or generate 61.13% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.39%
Values	Daily Returns

Nasmed Ozel Saglik  vs.  Gubre Fabrikalari TAS

Nasmed Ozel Saglik

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Nasmed Ozel Saglik are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Nasmed Ozel demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Gubre Fabrikalari TAS

Risk-Adjusted Performance

31 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gubre Fabrikalari TAS are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Gubre Fabrikalari demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nasmed Ozel and Gubre Fabrikalari

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

The idea behind Nasmed Ozel Saglik and Gubre Fabrikalari 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.