Correlation Between Nigbas Nigde and KOC METALURJI

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

By analyzing existing cross correlation between Nigbas Nigde Beton and KOC METALURJI, you can compare the effects of market volatilities on Nigbas Nigde and KOC METALURJI 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 Nigbas Nigde with a short position of KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nigbas Nigde and KOC METALURJI.

Diversification Opportunities for Nigbas Nigde and KOC METALURJI

-0.36

Correlation Coefficient

Nigbas Nigde  KOC METALURJI

Very good diversification

The 3 months correlation between Nigbas and KOC is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Nigbas Nigde Beton and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI and Nigbas Nigde 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 Nigbas Nigde Beton are associated (or correlated) with KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Nigbas Nigde i.e., Nigbas Nigde and KOC METALURJI go up and down completely randomly.

Pair Corralation between Nigbas Nigde and KOC METALURJI

Assuming the 90 days trading horizon Nigbas Nigde Beton is expected to under-perform the KOC METALURJI. In addition to that, Nigbas Nigde is 1.2 times more volatile than KOC METALURJI. It trades about -0.04 of its total potential returns per unit of risk. KOC METALURJI is currently generating about 0.08 per unit of volatility. If you would invest  1,485  in KOC METALURJI on October 10, 2024 and sell it today you would earn a total of  180.00  from holding KOC METALURJI or generate 12.12% return on investment over 90 days.

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

Nigbas Nigde Beton  vs.  KOC METALURJI

Nigbas Nigde Beton

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Nigbas Nigde Beton has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

KOC METALURJI

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in KOC METALURJI are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, KOC METALURJI demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Nigbas Nigde and KOC METALURJI

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

The idea behind Nigbas Nigde Beton and KOC METALURJI 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.