Correlation Between Nuh Cimento and Ayes Celik

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

By analyzing existing cross correlation between Nuh Cimento Sanayi and Ayes Celik Hasir, you can compare the effects of market volatilities on Nuh Cimento and Ayes Celik 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 Nuh Cimento with a short position of Ayes Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuh Cimento and Ayes Celik.

Diversification Opportunities for Nuh Cimento and Ayes Celik

-0.33

Correlation Coefficient

Nuh Cimento  Ayes Celik

Very good diversification

The 3 months correlation between Nuh and Ayes is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Nuh Cimento Sanayi and Ayes Celik Hasir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayes Celik Hasir and Nuh Cimento 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 Nuh Cimento Sanayi are associated (or correlated) with Ayes Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayes Celik Hasir has no effect on the direction of Nuh Cimento i.e., Nuh Cimento and Ayes Celik go up and down completely randomly.

Pair Corralation between Nuh Cimento and Ayes Celik

Assuming the 90 days trading horizon Nuh Cimento Sanayi is expected to under-perform the Ayes Celik. But the stock apears to be less risky and, when comparing its historical volatility, Nuh Cimento Sanayi is 1.05 times less risky than Ayes Celik. The stock trades about -0.04 of its potential returns per unit of risk. The Ayes Celik Hasir is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  878.00  in Ayes Celik Hasir on December 28, 2024 and sell it today you would earn a total of  52.00  from holding Ayes Celik Hasir or generate 5.92% return on investment over 90 days.

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

Nuh Cimento Sanayi  vs.  Ayes Celik Hasir

Nuh Cimento Sanayi

Risk-Adjusted Performance

Very Weak

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

Ayes Celik Hasir

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ayes Celik Hasir are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ayes Celik may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Nuh Cimento and Ayes Celik

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

The idea behind Nuh Cimento Sanayi and Ayes Celik Hasir 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.