Correlation Between Penguen Gida and Kardemir Karabuk
Can any of the company-specific risk be diversified away by investing in both Penguen Gida and Kardemir Karabuk 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 Kardemir Karabuk 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 Kardemir Karabuk Demir, you can compare the effects of market volatilities on Penguen Gida and Kardemir Karabuk 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 Kardemir Karabuk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penguen Gida and Kardemir Karabuk.
Diversification Opportunities for Penguen Gida and Kardemir Karabuk
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Penguen and Kardemir is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Penguen Gida Sanayi and Kardemir Karabuk Demir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardemir Karabuk Demir 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 Kardemir Karabuk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardemir Karabuk Demir has no effect on the direction of Penguen Gida i.e., Penguen Gida and Kardemir Karabuk go up and down completely randomly.
Pair Corralation between Penguen Gida and Kardemir Karabuk
Assuming the 90 days trading horizon Penguen Gida Sanayi is expected to under-perform the Kardemir Karabuk. But the stock apears to be less risky and, when comparing its historical volatility, Penguen Gida Sanayi is 1.38 times less risky than Kardemir Karabuk. The stock trades about -0.2 of its potential returns per unit of risk. The Kardemir Karabuk Demir is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,366 in Kardemir Karabuk Demir on October 12, 2024 and sell it today you would earn a total of 114.00 from holding Kardemir Karabuk Demir or generate 4.82% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
Penguen Gida Sanayi vs. Kardemir Karabuk Demir
Performance |
Timeline |
Penguen Gida Sanayi |
Kardemir Karabuk Demir |
Penguen Gida and Kardemir Karabuk Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Penguen Gida and Kardemir Karabuk
The main advantage of trading using opposite Penguen Gida and Kardemir Karabuk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Penguen Gida position performs unexpectedly, Kardemir Karabuk 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 Kardemir Karabuk will offset losses from the drop in Kardemir Karabuk's long position.Penguen Gida vs. Cuhadaroglu Metal Sanayi | Penguen Gida vs. Sodas Sodyum Sanayi | Penguen Gida vs. Sekerbank TAS | Penguen Gida vs. Creditwest Faktoring AS |
Kardemir Karabuk vs. Akbank TAS | Kardemir Karabuk vs. ICBC Turkey Bank | Kardemir Karabuk vs. E Data Teknoloji Pazarlama | Kardemir Karabuk vs. Trabzonspor Sportif Yatirim |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |