Correlation Between Kocaer Celik and Mackolik Internet

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

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

Diversification Opportunities for Kocaer Celik and Mackolik Internet

0.88

Correlation Coefficient

Kocaer Celik  Mackolik Internet

Very poor diversification

The 3 months correlation between Kocaer and Mackolik is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik Sanayi and Mackolik Internet Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mackolik Internet and Kocaer Celik 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 Kocaer Celik Sanayi are associated (or correlated) with Mackolik Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mackolik Internet has no effect on the direction of Kocaer Celik i.e., Kocaer Celik and Mackolik Internet go up and down completely randomly.

Pair Corralation between Kocaer Celik and Mackolik Internet

Assuming the 90 days trading horizon Kocaer Celik is expected to generate 4.32 times less return on investment than Mackolik Internet. But when comparing it to its historical volatility, Kocaer Celik Sanayi is 1.03 times less risky than Mackolik Internet. It trades about 0.07 of its potential returns per unit of risk. Mackolik Internet Hizmetleri is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  7,250  in Mackolik Internet Hizmetleri on October 5, 2024 and sell it today you would earn a total of  3,230  from holding Mackolik Internet Hizmetleri or generate 44.55% return on investment over 90 days.

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

Kocaer Celik Sanayi  vs.  Mackolik Internet Hizmetleri

Kocaer Celik Sanayi

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Kocaer Celik Sanayi are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kocaer Celik may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Mackolik Internet

Risk-Adjusted Performance

22 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Mackolik Internet Hizmetleri are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Mackolik Internet demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kocaer Celik and Mackolik Internet

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

The idea behind Kocaer Celik Sanayi and Mackolik Internet Hizmetleri 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.