Correlation Between Ozerden Plastik and Ayes Celik

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

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

Diversification Opportunities for Ozerden Plastik and Ayes Celik

-0.41

Correlation Coefficient

Ozerden Plastik  Ayes Celik

Very good diversification

The 3 months correlation between Ozerden and Ayes is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ozerden Plastik 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 Ozerden Plastik 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 Ozerden Plastik 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 Ozerden Plastik i.e., Ozerden Plastik and Ayes Celik go up and down completely randomly.

Pair Corralation between Ozerden Plastik and Ayes Celik

Assuming the 90 days trading horizon Ozerden Plastik Sanayi is expected to under-perform the Ayes Celik. But the stock apears to be less risky and, when comparing its historical volatility, Ozerden Plastik Sanayi is 1.22 times less risky than Ayes Celik. The stock trades about -0.01 of its potential returns per unit of risk. The Ayes Celik Hasir is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  856.00  in Ayes Celik Hasir on September 21, 2024 and sell it today you would lose (21.00) from holding Ayes Celik Hasir or give up 2.45% of portfolio value over 90 days.

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

Ozerden Plastik Sanayi  vs.  Ayes Celik Hasir

Ozerden Plastik Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Ozerden Plastik Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Ozerden Plastik 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

0 of 100

Very Weak

Over the last 90 days Ayes Celik Hasir has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Ozerden Plastik and Ayes Celik

The main advantage of trading using opposite Ozerden Plastik and Ayes Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ozerden Plastik 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 Ozerden Plastik 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.

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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.