Correlation Between Mazhar Zorlu and Zedur Enerji

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

By analyzing existing cross correlation between Mazhar Zorlu Holding and Zedur Enerji Elektrik, you can compare the effects of market volatilities on Mazhar Zorlu and Zedur Enerji 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 Mazhar Zorlu with a short position of Zedur Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mazhar Zorlu and Zedur Enerji.

Diversification Opportunities for Mazhar Zorlu and Zedur Enerji

0.89

Correlation Coefficient

Mazhar Zorlu  Zedur Enerji

Very poor diversification

The 3 months correlation between Mazhar and Zedur is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Mazhar Zorlu Holding and Zedur Enerji Elektrik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zedur Enerji Elektrik and Mazhar Zorlu 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 Mazhar Zorlu Holding are associated (or correlated) with Zedur Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zedur Enerji Elektrik has no effect on the direction of Mazhar Zorlu i.e., Mazhar Zorlu and Zedur Enerji go up and down completely randomly.

Pair Corralation between Mazhar Zorlu and Zedur Enerji

Assuming the 90 days trading horizon Mazhar Zorlu Holding is expected to generate 0.57 times more return on investment than Zedur Enerji. However, Mazhar Zorlu Holding is 1.75 times less risky than Zedur Enerji. It trades about -0.17 of its potential returns per unit of risk. Zedur Enerji Elektrik is currently generating about -0.11 per unit of risk. If you would invest  661.00  in Mazhar Zorlu Holding on December 28, 2024 and sell it today you would lose (106.00) from holding Mazhar Zorlu Holding or give up 16.04% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Mazhar Zorlu Holding  vs.  Zedur Enerji Elektrik

Mazhar Zorlu Holding

Risk-Adjusted Performance

Very Weak

Over the last 90 days Mazhar Zorlu Holding 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Zedur Enerji Elektrik

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zedur Enerji Elektrik 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Mazhar Zorlu and Zedur Enerji

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

The idea behind Mazhar Zorlu Holding and Zedur Enerji Elektrik 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.