Correlation Between Penguen Gida and Gubre Fabrikalari

Can any of the company-specific risk be diversified away by investing in both Penguen Gida and Gubre Fabrikalari 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 Gubre Fabrikalari 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 Gubre Fabrikalari TAS, you can compare the effects of market volatilities on Penguen Gida and Gubre Fabrikalari 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 Gubre Fabrikalari. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penguen Gida and Gubre Fabrikalari.

Diversification Opportunities for Penguen Gida and Gubre Fabrikalari

0.0

Correlation Coefficient

Penguen Gida  Gubre Fabrikalari

Pay attention - limited upside

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

Pair Corralation between Penguen Gida and Gubre Fabrikalari

If you would invest  37,030  in Gubre Fabrikalari TAS on October 13, 2024 and sell it today you would lose (7,930) from holding Gubre Fabrikalari TAS or give up 21.42% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Penguen Gida Sanayi  vs.  Gubre Fabrikalari TAS

Penguen Gida Sanayi

Risk-Adjusted Performance

0 of 100

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.

Gubre Fabrikalari TAS

Risk-Adjusted Performance

31 of 100

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Gubre Fabrikalari TAS are ranked lower than 31 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Gubre Fabrikalari demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Penguen Gida and Gubre Fabrikalari

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

The idea behind Penguen Gida Sanayi and Gubre Fabrikalari TAS 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.