Correlation Between Kent Gida and Eminis Ambalaj

Can any of the company-specific risk be diversified away by investing in both Kent Gida and Eminis Ambalaj 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 Kent Gida and Eminis Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kent Gida Maddeleri and Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Kent Gida and Eminis Ambalaj 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 Kent Gida with a short position of Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kent Gida and Eminis Ambalaj.

Diversification Opportunities for Kent Gida and Eminis Ambalaj

-0.07

Correlation Coefficient

Kent Gida  Eminis Ambalaj

Good diversification

The 3 months correlation between Kent and Eminis is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Kent Gida Maddeleri and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj Sanayi and Kent Gida 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 Kent Gida Maddeleri are associated (or correlated) with Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Kent Gida i.e., Kent Gida and Eminis Ambalaj go up and down completely randomly.

Pair Corralation between Kent Gida and Eminis Ambalaj

Assuming the 90 days trading horizon Kent Gida Maddeleri is expected to under-perform the Eminis Ambalaj. But the stock apears to be less risky and, when comparing its historical volatility, Kent Gida Maddeleri is 1.3 times less risky than Eminis Ambalaj. The stock trades about -0.11 of its potential returns per unit of risk. The Eminis Ambalaj Sanayi is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  25,000  in Eminis Ambalaj Sanayi on December 21, 2024 and sell it today you would earn a total of  6,000  from holding Eminis Ambalaj Sanayi or generate 24.0% return on investment over 90 days.

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

Kent Gida Maddeleri  vs.  Eminis Ambalaj Sanayi

Kent Gida Maddeleri

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kent Gida Maddeleri has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Eminis Ambalaj Sanayi

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Eminis Ambalaj Sanayi are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Eminis Ambalaj demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Kent Gida and Eminis Ambalaj

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

The idea behind Kent Gida Maddeleri and Eminis Ambalaj Sanayi 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.