Correlation Between Penguen Gida and Alfas Solar

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Can any of the company-specific risk be diversified away by investing in both Penguen Gida and Alfas Solar 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 Penguen Gida and Alfas Solar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Penguen Gida Sanayi and Alfas Solar Enerji, you can compare the effects of market volatilities on Penguen Gida and Alfas Solar 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 Penguen Gida with a short position of Alfas Solar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penguen Gida and Alfas Solar.

Diversification Opportunities for Penguen Gida and Alfas Solar

PenguenAlfasDiversified AwayPenguenAlfasDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Penguen and Alfas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Penguen Gida Sanayi and Alfas Solar Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alfas Solar Enerji and Penguen Gida 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 Penguen Gida Sanayi are associated (or correlated) with Alfas Solar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alfas Solar Enerji has no effect on the direction of Penguen Gida i.e., Penguen Gida and Alfas Solar go up and down completely randomly.

Pair Corralation between Penguen Gida and Alfas Solar

If you would invest  4,684  in Alfas Solar Enerji on October 14, 2024 and sell it today you would earn a total of  2,426  from holding Alfas Solar Enerji or generate 51.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Penguen Gida Sanayi  vs.  Alfas Solar Enerji

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec 0102030
JavaScript chart by amCharts 3.21.15PENGD ALFAS
       Timeline  
Penguen Gida Sanayi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Penguen Gida Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Penguen Gida is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
Alfas Solar Enerji 

Risk-Adjusted Performance

19 of 100

 
Weak
 
Strong
Solid
Compared to the overall equity markets, risk-adjusted returns on investments in Alfas Solar Enerji are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Alfas Solar demonstrated solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan5055606570

Penguen Gida and Alfas Solar Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.010.020.030.040.05
JavaScript chart by amCharts 3.21.15PENGD ALFAS
       Returns  

Pair Trading with Penguen Gida and Alfas Solar

The main advantage of trading using opposite Penguen Gida and Alfas Solar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penguen Gida position performs unexpectedly, Alfas Solar 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 Alfas Solar will offset losses from the drop in Alfas Solar's long position.
The idea behind Penguen Gida Sanayi and Alfas Solar Enerji 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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