Correlation Between Konya Cimento and Celebi Hava

Can any of the company-specific risk be diversified away by investing in both Konya Cimento and Celebi Hava 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 Konya Cimento and Celebi Hava into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Konya Cimento Sanayi and Celebi Hava Servisi, you can compare the effects of market volatilities on Konya Cimento and Celebi Hava 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 Konya Cimento with a short position of Celebi Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konya Cimento and Celebi Hava.

Diversification Opportunities for Konya Cimento and Celebi Hava

0.57

Correlation Coefficient

Konya Cimento  Celebi Hava

Very weak diversification

The 3 months correlation between Konya and Celebi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Konya Cimento Sanayi and Celebi Hava Servisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celebi Hava Servisi and Konya Cimento 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 Konya Cimento Sanayi are associated (or correlated) with Celebi Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celebi Hava Servisi has no effect on the direction of Konya Cimento i.e., Konya Cimento and Celebi Hava go up and down completely randomly.

Pair Corralation between Konya Cimento and Celebi Hava

Assuming the 90 days trading horizon Konya Cimento Sanayi is expected to under-perform the Celebi Hava. But the stock apears to be less risky and, when comparing its historical volatility, Konya Cimento Sanayi is 1.06 times less risky than Celebi Hava. The stock trades about -0.01 of its potential returns per unit of risk. The Celebi Hava Servisi is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  94,084  in Celebi Hava Servisi on September 23, 2024 and sell it today you would earn a total of  97,616  from holding Celebi Hava Servisi or generate 103.75% return on investment over 90 days.

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

Konya Cimento Sanayi  vs.  Celebi Hava Servisi

Konya Cimento Sanayi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Konya Cimento Sanayi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Konya Cimento may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Celebi Hava Servisi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Konya Cimento and Celebi Hava

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

The idea behind Konya Cimento Sanayi and Celebi Hava Servisi 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 Commodity Directory module to find actively traded commodities issued by global exchanges.