Correlation Between Nasdaq and Celebi Hava

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

By analyzing existing cross correlation between Nasdaq Inc and Celebi Hava Servisi, you can compare the effects of market volatilities on Nasdaq and Celebi 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 Nasdaq with a short position of Celebi Hava. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Celebi Hava.

Diversification Opportunities for Nasdaq and Celebi Hava

-0.4

Correlation Coefficient

Nasdaq  Celebi Hava

Very good diversification

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

Pair Corralation between Nasdaq and Celebi Hava

Given the investment horizon of 90 days Nasdaq Inc is expected to under-perform the Celebi Hava. But the stock apears to be less risky and, when comparing its historical volatility, Nasdaq Inc is 2.04 times less risky than Celebi Hava. The stock trades about -0.02 of its potential returns per unit of risk. The Celebi Hava Servisi is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  191,400  in Celebi Hava Servisi on December 27, 2024 and sell it today you would earn a total of  90,850  from holding Celebi Hava Servisi or generate 47.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.31%
Values	Daily Returns

Nasdaq Inc  vs.  Celebi Hava Servisi

Nasdaq Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Nasdaq Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Nasdaq is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Celebi Hava Servisi

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Celebi Hava Servisi are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Celebi Hava demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nasdaq and Celebi Hava

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

The idea behind Nasdaq Inc and Celebi Hava Servisi 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.