Correlation Between Iskenderun Demir and Emlak Konut

Can any of the company-specific risk be diversified away by investing in both Iskenderun Demir and Emlak Konut 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 Iskenderun Demir and Emlak Konut into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Iskenderun Demir ve and Emlak Konut Gayrimenkul, you can compare the effects of market volatilities on Iskenderun Demir and Emlak Konut 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 Iskenderun Demir with a short position of Emlak Konut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iskenderun Demir and Emlak Konut.

Diversification Opportunities for Iskenderun Demir and Emlak Konut

0.89

Correlation Coefficient

Iskenderun Demir  Emlak Konut

Very poor diversification

The 3 months correlation between Iskenderun and Emlak is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve and Emlak Konut Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emlak Konut Gayrimenkul and Iskenderun Demir 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 Iskenderun Demir ve are associated (or correlated) with Emlak Konut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emlak Konut Gayrimenkul has no effect on the direction of Iskenderun Demir i.e., Iskenderun Demir and Emlak Konut go up and down completely randomly.

Pair Corralation between Iskenderun Demir and Emlak Konut

Assuming the 90 days trading horizon Iskenderun Demir ve is expected to generate 1.05 times more return on investment than Emlak Konut. However, Iskenderun Demir is 1.05 times more volatile than Emlak Konut Gayrimenkul. It trades about 0.19 of its potential returns per unit of risk. Emlak Konut Gayrimenkul is currently generating about 0.09 per unit of risk. If you would invest  3,770  in Iskenderun Demir ve on October 6, 2024 and sell it today you would earn a total of  370.00  from holding Iskenderun Demir ve or generate 9.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	95.45%
Values	Daily Returns

Iskenderun Demir ve  vs.  Emlak Konut Gayrimenkul

Iskenderun Demir

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Iskenderun Demir ve are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Iskenderun Demir demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Emlak Konut Gayrimenkul

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Emlak Konut Gayrimenkul are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Emlak Konut demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Iskenderun Demir and Emlak Konut

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

The idea behind Iskenderun Demir ve and Emlak Konut Gayrimenkul 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.