Correlation Between Ekiz Kimya and Cuhadaroglu Metal

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

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

Diversification Opportunities for Ekiz Kimya and Cuhadaroglu Metal

0.0

Correlation Coefficient

Ekiz Kimya  Cuhadaroglu Metal

Pay attention - limited upside

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

Pair Corralation between Ekiz Kimya and Cuhadaroglu Metal

If you would invest  1,987  in Cuhadaroglu Metal Sanayi on October 26, 2024 and sell it today you would earn a total of  525.00  from holding Cuhadaroglu Metal Sanayi or generate 26.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Ekiz Kimya Sanayi  vs.  Cuhadaroglu Metal Sanayi

Ekiz Kimya Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ekiz Kimya Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Ekiz Kimya is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Cuhadaroglu Metal Sanayi

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cuhadaroglu Metal Sanayi are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Cuhadaroglu Metal demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ekiz Kimya and Cuhadaroglu Metal

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

The idea behind Ekiz Kimya Sanayi and Cuhadaroglu Metal Sanayi 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.

Check out your portfolio center.

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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.