Correlation Between Kartonsan Karton and Cemtas Celik

Can any of the company-specific risk be diversified away by investing in both Kartonsan Karton and Cemtas 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 Kartonsan Karton and Cemtas Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kartonsan Karton Sanayi and Cemtas Celik Makina, you can compare the effects of market volatilities on Kartonsan Karton and Cemtas 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 Kartonsan Karton with a short position of Cemtas Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kartonsan Karton and Cemtas Celik.

Diversification Opportunities for Kartonsan Karton and Cemtas Celik

0.78

Correlation Coefficient

Kartonsan Karton  Cemtas Celik

Poor diversification

The 3 months correlation between Kartonsan and Cemtas is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Kartonsan Karton Sanayi and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina and Kartonsan Karton 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 Kartonsan Karton Sanayi are associated (or correlated) with Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Kartonsan Karton i.e., Kartonsan Karton and Cemtas Celik go up and down completely randomly.

Pair Corralation between Kartonsan Karton and Cemtas Celik

Assuming the 90 days trading horizon Kartonsan Karton Sanayi is expected to generate 1.42 times more return on investment than Cemtas Celik. However, Kartonsan Karton is 1.42 times more volatile than Cemtas Celik Makina. It trades about 0.02 of its potential returns per unit of risk. Cemtas Celik Makina is currently generating about -0.03 per unit of risk. If you would invest  8,875  in Kartonsan Karton Sanayi on September 23, 2024 and sell it today you would lose (135.00) from holding Kartonsan Karton Sanayi or give up 1.52% of portfolio value over 90 days.

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

Kartonsan Karton Sanayi  vs.  Cemtas Celik Makina

Kartonsan Karton Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Cemtas Celik Makina

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Kartonsan Karton and Cemtas Celik

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

The idea behind Kartonsan Karton Sanayi and Cemtas Celik Makina 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.