Correlation Between Iskenderun Demir and Vestel Beyaz

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

Diversification Opportunities for Iskenderun Demir and Vestel Beyaz

0.1
  Correlation Coefficient

Average diversification

The 3 months correlation between Iskenderun and Vestel is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve and Vestel Beyaz Esya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vestel Beyaz Esya 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 Vestel Beyaz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vestel Beyaz Esya has no effect on the direction of Iskenderun Demir i.e., Iskenderun Demir and Vestel Beyaz go up and down completely randomly.

Pair Corralation between Iskenderun Demir and Vestel Beyaz

Assuming the 90 days trading horizon Iskenderun Demir ve is expected to generate 0.86 times more return on investment than Vestel Beyaz. However, Iskenderun Demir ve is 1.16 times less risky than Vestel Beyaz. It trades about 0.05 of its potential returns per unit of risk. Vestel Beyaz Esya is currently generating about 0.04 per unit of risk. If you would invest  3,281  in Iskenderun Demir ve on October 5, 2024 and sell it today you would earn a total of  797.00  from holding Iskenderun Demir ve or generate 24.29% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Iskenderun Demir ve  vs.  Vestel Beyaz Esya

 Performance 
       Timeline  
Iskenderun Demir 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Iskenderun Demir ve are ranked lower than 10 (%) 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.
Vestel Beyaz Esya 

Risk-Adjusted Performance

0 of 100

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

Iskenderun Demir and Vestel Beyaz Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Iskenderun Demir and Vestel Beyaz

The main advantage of trading using opposite Iskenderun Demir and Vestel Beyaz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iskenderun Demir position performs unexpectedly, Vestel Beyaz 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 Vestel Beyaz will offset losses from the drop in Vestel Beyaz's long position.
The idea behind Iskenderun Demir ve and Vestel Beyaz Esya 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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