Correlation Between Lumia and Saray Matbaacilik

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

By analyzing existing cross correlation between Lumia and Saray Matbaacilik Kagitcilik, you can compare the effects of market volatilities on Lumia and Saray Matbaacilik 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 Lumia with a short position of Saray Matbaacilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumia and Saray Matbaacilik.

Diversification Opportunities for Lumia and Saray Matbaacilik

-0.04

Correlation Coefficient

Lumia  Saray Matbaacilik

Good diversification

The 3 months correlation between Lumia and Saray is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Lumia and Saray Matbaacilik Kagitcilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saray Matbaacilik and Lumia 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 Lumia are associated (or correlated) with Saray Matbaacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saray Matbaacilik has no effect on the direction of Lumia i.e., Lumia and Saray Matbaacilik go up and down completely randomly.

Pair Corralation between Lumia and Saray Matbaacilik

Assuming the 90 days trading horizon Lumia is expected to generate 8.8 times more return on investment than Saray Matbaacilik. However, Lumia is 8.8 times more volatile than Saray Matbaacilik Kagitcilik. It trades about 0.04 of its potential returns per unit of risk. Saray Matbaacilik Kagitcilik is currently generating about 0.02 per unit of risk. If you would invest  0.00  in Lumia on October 10, 2024 and sell it today you would earn a total of  128.00  from holding Lumia or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.48%
Values	Daily Returns

Lumia  vs.  Saray Matbaacilik Kagitcilik

Lumia

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Lumia are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Lumia exhibited solid returns over the last few months and may actually be approaching a breakup point.

Saray Matbaacilik

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Saray Matbaacilik Kagitcilik are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Saray Matbaacilik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Lumia and Saray Matbaacilik

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

The idea behind Lumia and Saray Matbaacilik Kagitcilik 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.