Correlation Between Iskenderun Demir and Yukselen Celik

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

Diversification Opportunities for Iskenderun Demir and Yukselen Celik

0.43

Correlation Coefficient

Iskenderun Demir  Yukselen Celik

Very weak diversification

The 3 months correlation between Iskenderun and Yukselen is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve and Yukselen Celik As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yukselen Celik 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 Yukselen Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yukselen Celik As has no effect on the direction of Iskenderun Demir i.e., Iskenderun Demir and Yukselen Celik go up and down completely randomly.

Pair Corralation between Iskenderun Demir and Yukselen Celik

Assuming the 90 days trading horizon Iskenderun Demir ve is expected to generate 0.69 times more return on investment than Yukselen Celik. However, Iskenderun Demir ve is 1.45 times less risky than Yukselen Celik. It trades about -0.07 of its potential returns per unit of risk. Yukselen Celik As is currently generating about -0.08 per unit of risk. If you would invest  4,106  in Iskenderun Demir ve on December 30, 2024 and sell it today you would lose (446.00) from holding Iskenderun Demir ve or give up 10.86% of portfolio value over 90 days.

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

Iskenderun Demir ve  vs.  Yukselen Celik As

Iskenderun Demir

Risk-Adjusted Performance

Very Weak

Over the last 90 days Iskenderun Demir ve 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.

Yukselen Celik As

Risk-Adjusted Performance

Very Weak

Over the last 90 days Yukselen Celik As has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Iskenderun Demir and Yukselen Celik

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

The idea behind Iskenderun Demir ve and Yukselen Celik 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 Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.