Correlation Between Izmir Demir and Yukselen Celik

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

Diversification Opportunities for Izmir Demir and Yukselen Celik

0.49

Correlation Coefficient

Izmir Demir  Yukselen Celik

Very weak diversification

The 3 months correlation between Izmir and Yukselen is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Izmir Demir Celik 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 Izmir 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 Izmir Demir Celik 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 Izmir Demir i.e., Izmir Demir and Yukselen Celik go up and down completely randomly.

Pair Corralation between Izmir Demir and Yukselen Celik

Assuming the 90 days trading horizon Izmir Demir is expected to generate 3.6 times less return on investment than Yukselen Celik. But when comparing it to its historical volatility, Izmir Demir Celik is 1.78 times less risky than Yukselen Celik. It trades about 0.01 of its potential returns per unit of risk. Yukselen Celik As is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  668.00  in Yukselen Celik As on September 23, 2024 and sell it today you would earn a total of  63.00  from holding Yukselen Celik As or generate 9.43% return on investment over 90 days.

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

Izmir Demir Celik  vs.  Yukselen Celik As

Izmir Demir Celik

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Izmir Demir Celik are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Izmir Demir is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Yukselen Celik As

Risk-Adjusted Performance

0 of 100

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 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.

Pair Trading with Izmir Demir and Yukselen Celik

The main advantage of trading using opposite Izmir Demir and Yukselen Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Izmir 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 Izmir Demir Celik 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.

Check out your portfolio center.

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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.