Correlation Between Hektas Ticaret and Zedur Enerji

Can any of the company-specific risk be diversified away by investing in both Hektas Ticaret and Zedur Enerji 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 Hektas Ticaret and Zedur Enerji into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hektas Ticaret TAS and Zedur Enerji Elektrik, you can compare the effects of market volatilities on Hektas Ticaret and Zedur Enerji 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 Hektas Ticaret with a short position of Zedur Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hektas Ticaret and Zedur Enerji.

Diversification Opportunities for Hektas Ticaret and Zedur Enerji

0.31

Correlation Coefficient

Hektas Ticaret  Zedur Enerji

Weak diversification

The 3 months correlation between Hektas and Zedur is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Hektas Ticaret TAS and Zedur Enerji Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedur Enerji Elektrik and Hektas Ticaret 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 Hektas Ticaret TAS are associated (or correlated) with Zedur Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedur Enerji Elektrik has no effect on the direction of Hektas Ticaret i.e., Hektas Ticaret and Zedur Enerji go up and down completely randomly.

Pair Corralation between Hektas Ticaret and Zedur Enerji

Assuming the 90 days trading horizon Hektas Ticaret TAS is expected to under-perform the Zedur Enerji. But the stock apears to be less risky and, when comparing its historical volatility, Hektas Ticaret TAS is 1.32 times less risky than Zedur Enerji. The stock trades about -0.07 of its potential returns per unit of risk. The Zedur Enerji Elektrik is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  1,330  in Zedur Enerji Elektrik on October 7, 2024 and sell it today you would lose (451.00) from holding Zedur Enerji Elektrik or give up 33.91% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Hektas Ticaret TAS  vs.  Zedur Enerji Elektrik

Hektas Ticaret TAS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Hektas Ticaret TAS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Hektas Ticaret may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Zedur Enerji Elektrik

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Zedur Enerji Elektrik are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Zedur Enerji demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hektas Ticaret and Zedur Enerji

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

The idea behind Hektas Ticaret TAS and Zedur Enerji Elektrik 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.