Correlation Between Konya Cimento and Pegasus Hava

Can any of the company-specific risk be diversified away by investing in both Konya Cimento and Pegasus 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 Pegasus 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 Pegasus Hava Tasimaciligi, you can compare the effects of market volatilities on Konya Cimento and Pegasus 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 Pegasus Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konya Cimento and Pegasus Hava.

Diversification Opportunities for Konya Cimento and Pegasus Hava

-0.29

Correlation Coefficient

Konya Cimento  Pegasus Hava

Very good diversification

The 3 months correlation between Konya and Pegasus is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Konya Cimento Sanayi and Pegasus Hava Tasimaciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pegasus Hava Tasimaciligi 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 Pegasus Hava. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pegasus Hava Tasimaciligi has no effect on the direction of Konya Cimento i.e., Konya Cimento and Pegasus Hava go up and down completely randomly.

Pair Corralation between Konya Cimento and Pegasus Hava

Assuming the 90 days trading horizon Konya Cimento Sanayi is expected to under-perform the Pegasus Hava. In addition to that, Konya Cimento is 1.36 times more volatile than Pegasus Hava Tasimaciligi. It trades about -0.01 of its total potential returns per unit of risk. Pegasus Hava Tasimaciligi is currently generating about 0.08 per unit of volatility. If you would invest  14,936  in Pegasus Hava Tasimaciligi on September 23, 2024 and sell it today you would earn a total of  7,194  from holding Pegasus Hava Tasimaciligi or generate 48.17% return on investment over 90 days.

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

Konya Cimento Sanayi  vs.  Pegasus Hava Tasimaciligi

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.

Pegasus Hava Tasimaciligi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pegasus Hava Tasimaciligi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Konya Cimento and Pegasus Hava

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

The idea behind Konya Cimento Sanayi and Pegasus Hava Tasimaciligi 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.