Correlation Between Kardemir Karabuk and Emlak Konut

Can any of the company-specific risk be diversified away by investing in both Kardemir Karabuk and Emlak Konut 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 Kardemir Karabuk and Emlak Konut into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Kardemir Karabuk Demir and Emlak Konut Gayrimenkul, you can compare the effects of market volatilities on Kardemir Karabuk and Emlak Konut 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 Kardemir Karabuk with a short position of Emlak Konut. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kardemir Karabuk and Emlak Konut.

Diversification Opportunities for Kardemir Karabuk and Emlak Konut

0.4

Correlation Coefficient

Kardemir Karabuk  Emlak Konut

Very weak diversification

The 3 months correlation between Kardemir and Emlak is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Kardemir Karabuk Demir and Emlak Konut Gayrimenkul in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emlak Konut Gayrimenkul and Kardemir Karabuk 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 Kardemir Karabuk Demir are associated (or correlated) with Emlak Konut. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emlak Konut Gayrimenkul has no effect on the direction of Kardemir Karabuk i.e., Kardemir Karabuk and Emlak Konut go up and down completely randomly.

Pair Corralation between Kardemir Karabuk and Emlak Konut

Assuming the 90 days trading horizon Kardemir Karabuk Demir is expected to generate 0.92 times more return on investment than Emlak Konut. However, Kardemir Karabuk Demir is 1.09 times less risky than Emlak Konut. It trades about 0.05 of its potential returns per unit of risk. Emlak Konut Gayrimenkul is currently generating about -0.03 per unit of risk. If you would invest  2,722  in Kardemir Karabuk Demir on December 29, 2024 and sell it today you would earn a total of  210.00  from holding Kardemir Karabuk Demir or generate 7.71% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Kardemir Karabuk Demir  vs.  Emlak Konut Gayrimenkul

Kardemir Karabuk Demir

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Kardemir Karabuk Demir are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kardemir Karabuk may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Emlak Konut Gayrimenkul

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Kardemir Karabuk and Emlak Konut

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

The idea behind Kardemir Karabuk Demir and Emlak Konut Gayrimenkul 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 Anywhere module to track or share privately all of your investments from the convenience of any device.