Correlation Between Kordsa Global and Eminis Ambalaj

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

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

Diversification Opportunities for Kordsa Global and Eminis Ambalaj

0.02

Correlation Coefficient

Kordsa Global  Eminis Ambalaj

Significant diversification

The 3 months correlation between Kordsa and Eminis is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Kordsa Global Endustriyel 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 Kordsa Global 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 Kordsa Global Endustriyel 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 Kordsa Global i.e., Kordsa Global and Eminis Ambalaj go up and down completely randomly.

Pair Corralation between Kordsa Global and Eminis Ambalaj

Assuming the 90 days trading horizon Kordsa Global Endustriyel is expected to generate 0.48 times more return on investment than Eminis Ambalaj. However, Kordsa Global Endustriyel is 2.08 times less risky than Eminis Ambalaj. It trades about -0.05 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about -0.03 per unit of risk. If you would invest  7,150  in Kordsa Global Endustriyel on October 24, 2024 and sell it today you would lose (145.00) from holding Kordsa Global Endustriyel or give up 2.03% of portfolio value over 90 days.

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

Kordsa Global Endustriyel  vs.  Eminis Ambalaj Sanayi

Kordsa Global Endustriyel

Risk-Adjusted Performance

0 of 100

Weak

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

Eminis Ambalaj Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Eminis Ambalaj Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Kordsa Global and Eminis Ambalaj

The main advantage of trading using opposite Kordsa Global and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kordsa Global 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 Kordsa Global Endustriyel 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.

Check out your portfolio center.

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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.