Correlation Between Oyak Cimento and Yibitas Yozgat

Can any of the company-specific risk be diversified away by investing in both Oyak Cimento and Yibitas Yozgat 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 Yibitas Yozgat 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 Yibitas Yozgat Isci, you can compare the effects of market volatilities on Oyak Cimento and Yibitas Yozgat 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 Yibitas Yozgat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oyak Cimento and Yibitas Yozgat.

Diversification Opportunities for Oyak Cimento and Yibitas Yozgat

0.52

Correlation Coefficient

Oyak Cimento  Yibitas Yozgat

Very weak diversification

The 3 months correlation between Oyak and Yibitas is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Oyak Cimento Fabrikalari and Yibitas Yozgat Isci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yibitas Yozgat Isci 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 Yibitas Yozgat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yibitas Yozgat Isci has no effect on the direction of Oyak Cimento i.e., Oyak Cimento and Yibitas Yozgat go up and down completely randomly.

Pair Corralation between Oyak Cimento and Yibitas Yozgat

Assuming the 90 days trading horizon Oyak Cimento Fabrikalari is expected to generate 3.3 times more return on investment than Yibitas Yozgat. However, Oyak Cimento is 3.3 times more volatile than Yibitas Yozgat Isci. It trades about 0.05 of its potential returns per unit of risk. Yibitas Yozgat Isci is currently generating about 0.05 per unit of risk. If you would invest  601.00  in Oyak Cimento Fabrikalari on October 11, 2024 and sell it today you would earn a total of  1,709  from holding Oyak Cimento Fabrikalari or generate 284.36% return on investment over 90 days.

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

Oyak Cimento Fabrikalari  vs.  Yibitas Yozgat Isci

Oyak Cimento Fabrikalari

Risk-Adjusted Performance

21 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oyak Cimento Fabrikalari are ranked lower than 21 (%) 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.

Yibitas Yozgat Isci

Risk-Adjusted Performance

0 of 100

Weak

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

Pair Trading with Oyak Cimento and Yibitas Yozgat

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

The idea behind Oyak Cimento Fabrikalari and Yibitas Yozgat Isci 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.