Correlation Between Oyak Cimento and Turk Traktor

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

By analyzing existing cross correlation between Oyak Cimento Fabrikalari and Turk Traktor ve, you can compare the effects of market volatilities on Oyak Cimento and Turk Traktor 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 Oyak Cimento with a short position of Turk Traktor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oyak Cimento and Turk Traktor.

Diversification Opportunities for Oyak Cimento and Turk Traktor

0.34

Correlation Coefficient

Oyak Cimento  Turk Traktor

Weak diversification

The 3 months correlation between Oyak and Turk is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Oyak Cimento Fabrikalari and Turk Traktor ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turk Traktor ve and Oyak 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 Oyak Cimento Fabrikalari are associated (or correlated) with Turk Traktor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turk Traktor ve has no effect on the direction of Oyak Cimento i.e., Oyak Cimento and Turk Traktor go up and down completely randomly.

Pair Corralation between Oyak Cimento and Turk Traktor

Assuming the 90 days trading horizon Oyak Cimento Fabrikalari is expected to generate 1.21 times more return on investment than Turk Traktor. However, Oyak Cimento is 1.21 times more volatile than Turk Traktor ve. It trades about 0.09 of its potential returns per unit of risk. Turk Traktor ve is currently generating about 0.04 per unit of risk. If you would invest  1,450  in Oyak Cimento Fabrikalari on October 5, 2024 and sell it today you would earn a total of  956.00  from holding Oyak Cimento Fabrikalari or generate 65.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Oyak Cimento Fabrikalari  vs.  Turk Traktor ve

Oyak Cimento Fabrikalari

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oyak Cimento Fabrikalari are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Oyak Cimento demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Turk Traktor ve

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Turk Traktor ve are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Turk Traktor may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Oyak Cimento and Turk Traktor

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

The idea behind Oyak Cimento Fabrikalari and Turk Traktor ve 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.