Correlation Between Ihlas Gazetecilik and Sekerbank TAS

Can any of the company-specific risk be diversified away by investing in both Ihlas Gazetecilik and Sekerbank TAS 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 Ihlas Gazetecilik and Sekerbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ihlas Gazetecilik AS and Sekerbank TAS, you can compare the effects of market volatilities on Ihlas Gazetecilik and Sekerbank TAS 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 Ihlas Gazetecilik with a short position of Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ihlas Gazetecilik and Sekerbank TAS.

Diversification Opportunities for Ihlas Gazetecilik and Sekerbank TAS

0.39

Correlation Coefficient

Ihlas Gazetecilik  Sekerbank TAS

Weak diversification

The 3 months correlation between Ihlas and Sekerbank is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Ihlas Gazetecilik AS and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS and Ihlas Gazetecilik 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 Ihlas Gazetecilik AS are associated (or correlated) with Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Ihlas Gazetecilik i.e., Ihlas Gazetecilik and Sekerbank TAS go up and down completely randomly.

Pair Corralation between Ihlas Gazetecilik and Sekerbank TAS

Assuming the 90 days trading horizon Ihlas Gazetecilik AS is expected to under-perform the Sekerbank TAS. In addition to that, Ihlas Gazetecilik is 1.29 times more volatile than Sekerbank TAS. It trades about -0.03 of its total potential returns per unit of risk. Sekerbank TAS is currently generating about 0.01 per unit of volatility. If you would invest  479.00  in Sekerbank TAS on December 29, 2024 and sell it today you would lose (8.00) from holding Sekerbank TAS or give up 1.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	98.46%
Values	Daily Returns

Ihlas Gazetecilik AS  vs.  Sekerbank TAS

Ihlas Gazetecilik

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ihlas Gazetecilik AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Sekerbank TAS

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Ihlas Gazetecilik and Sekerbank TAS

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

The idea behind Ihlas Gazetecilik AS and Sekerbank 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.