Correlation Between Kartonsan Karton and Peker Gayrimenkul

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

Diversification Opportunities for Kartonsan Karton and Peker Gayrimenkul

-0.14

Correlation Coefficient

Kartonsan Karton  Peker Gayrimenkul

Good diversification

The 3 months correlation between Kartonsan and Peker is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Kartonsan Karton Sanayi and Peker Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Peker Gayrimenkul Yatirim 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 Peker Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Peker Gayrimenkul Yatirim has no effect on the direction of Kartonsan Karton i.e., Kartonsan Karton and Peker Gayrimenkul go up and down completely randomly.

Pair Corralation between Kartonsan Karton and Peker Gayrimenkul

Assuming the 90 days trading horizon Kartonsan Karton Sanayi is expected to generate 0.92 times more return on investment than Peker Gayrimenkul. However, Kartonsan Karton Sanayi is 1.08 times less risky than Peker Gayrimenkul. It trades about 0.0 of its potential returns per unit of risk. Peker Gayrimenkul Yatirim is currently generating about -0.02 per unit of risk. If you would invest  8,635  in Kartonsan Karton Sanayi on December 25, 2024 and sell it today you would lose (385.00) from holding Kartonsan Karton Sanayi or give up 4.46% of portfolio value over 90 days.

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

Kartonsan Karton Sanayi  vs.  Peker Gayrimenkul Yatirim

Kartonsan Karton Sanayi

Risk-Adjusted Performance

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.

Peker Gayrimenkul Yatirim

Risk-Adjusted Performance

Very Weak

Over the last 90 days Peker Gayrimenkul Yatirim has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Peker Gayrimenkul 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 Peker Gayrimenkul

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

The idea behind Kartonsan Karton Sanayi and Peker Gayrimenkul Yatirim 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.