Correlation Between Iskenderun Demir and Kuyas Yatirim

Can any of the company-specific risk be diversified away by investing in both Iskenderun Demir and Kuyas Yatirim 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 Kuyas Yatirim 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 Kuyas Yatirim AS, you can compare the effects of market volatilities on Iskenderun Demir and Kuyas Yatirim 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 Kuyas Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iskenderun Demir and Kuyas Yatirim.

Diversification Opportunities for Iskenderun Demir and Kuyas Yatirim

0.71

Correlation Coefficient

Iskenderun Demir  Kuyas Yatirim

Poor diversification

The 3 months correlation between Iskenderun and Kuyas is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve and Kuyas Yatirim AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kuyas Yatirim AS 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 Kuyas Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kuyas Yatirim AS has no effect on the direction of Iskenderun Demir i.e., Iskenderun Demir and Kuyas Yatirim go up and down completely randomly.

Pair Corralation between Iskenderun Demir and Kuyas Yatirim

Assuming the 90 days trading horizon Iskenderun Demir ve is expected to under-perform the Kuyas Yatirim. But the stock apears to be less risky and, when comparing its historical volatility, Iskenderun Demir ve is 1.41 times less risky than Kuyas Yatirim. The stock trades about -0.01 of its potential returns per unit of risk. The Kuyas Yatirim AS is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  1,323  in Kuyas Yatirim AS on October 20, 2024 and sell it today you would earn a total of  739.00  from holding Kuyas Yatirim AS or generate 55.86% return on investment over 90 days.

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

Iskenderun Demir ve  vs.  Kuyas Yatirim AS

Iskenderun Demir

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Iskenderun Demir ve are ranked lower than 9 (%) 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.

Kuyas Yatirim AS

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kuyas Yatirim AS are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kuyas Yatirim demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Iskenderun Demir and Kuyas Yatirim

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

The idea behind Iskenderun Demir ve and Kuyas Yatirim AS 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.