Correlation Between Hitit Bilgisayar and Prizma Pres

Can any of the company-specific risk be diversified away by investing in both Hitit Bilgisayar and Prizma Pres 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 Hitit Bilgisayar and Prizma Pres into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hitit Bilgisayar Hizmetleri and Prizma Pres Matbaacilik, you can compare the effects of market volatilities on Hitit Bilgisayar and Prizma Pres 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 Hitit Bilgisayar with a short position of Prizma Pres. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitit Bilgisayar and Prizma Pres.

Diversification Opportunities for Hitit Bilgisayar and Prizma Pres

-0.12

Correlation Coefficient

Hitit Bilgisayar  Prizma Pres

Good diversification

The 3 months correlation between Hitit and Prizma is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Hitit Bilgisayar Hizmetleri and Prizma Pres Matbaacilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prizma Pres Matbaacilik and Hitit Bilgisayar 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 Hitit Bilgisayar Hizmetleri are associated (or correlated) with Prizma Pres. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prizma Pres Matbaacilik has no effect on the direction of Hitit Bilgisayar i.e., Hitit Bilgisayar and Prizma Pres go up and down completely randomly.

Pair Corralation between Hitit Bilgisayar and Prizma Pres

Assuming the 90 days trading horizon Hitit Bilgisayar Hizmetleri is expected to under-perform the Prizma Pres. In addition to that, Hitit Bilgisayar is 1.22 times more volatile than Prizma Pres Matbaacilik. It trades about -0.01 of its total potential returns per unit of risk. Prizma Pres Matbaacilik is currently generating about 0.25 per unit of volatility. If you would invest  687.00  in Prizma Pres Matbaacilik on December 21, 2024 and sell it today you would earn a total of  328.00  from holding Prizma Pres Matbaacilik or generate 47.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Hitit Bilgisayar Hizmetleri  vs.  Prizma Pres Matbaacilik

Hitit Bilgisayar Hiz

Risk-Adjusted Performance

Very Weak

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

Prizma Pres Matbaacilik

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Prizma Pres Matbaacilik are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Prizma Pres demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hitit Bilgisayar and Prizma Pres

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

The idea behind Hitit Bilgisayar Hizmetleri and Prizma Pres Matbaacilik 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.