Correlation Between Penta Teknoloji and Kalekim Kimyevi

Can any of the company-specific risk be diversified away by investing in both Penta Teknoloji and Kalekim Kimyevi 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 Penta Teknoloji and Kalekim Kimyevi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Penta Teknoloji Urunleri and Kalekim Kimyevi Maddeler, you can compare the effects of market volatilities on Penta Teknoloji and Kalekim Kimyevi 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 Penta Teknoloji with a short position of Kalekim Kimyevi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Penta Teknoloji and Kalekim Kimyevi.

Diversification Opportunities for Penta Teknoloji and Kalekim Kimyevi

0.77

Correlation Coefficient

Penta Teknoloji  Kalekim Kimyevi

Poor diversification

The 3 months correlation between Penta and Kalekim is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Penta Teknoloji Urunleri and Kalekim Kimyevi Maddeler in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kalekim Kimyevi Maddeler and Penta Teknoloji 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 Penta Teknoloji Urunleri are associated (or correlated) with Kalekim Kimyevi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kalekim Kimyevi Maddeler has no effect on the direction of Penta Teknoloji i.e., Penta Teknoloji and Kalekim Kimyevi go up and down completely randomly.

Pair Corralation between Penta Teknoloji and Kalekim Kimyevi

Assuming the 90 days trading horizon Penta Teknoloji Urunleri is expected to under-perform the Kalekim Kimyevi. But the stock apears to be less risky and, when comparing its historical volatility, Penta Teknoloji Urunleri is 1.3 times less risky than Kalekim Kimyevi. The stock trades about -0.11 of its potential returns per unit of risk. The Kalekim Kimyevi Maddeler is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  3,032  in Kalekim Kimyevi Maddeler on December 5, 2024 and sell it today you would lose (162.00) from holding Kalekim Kimyevi Maddeler or give up 5.34% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Penta Teknoloji Urunleri  vs.  Kalekim Kimyevi Maddeler

Penta Teknoloji Urunleri

Risk-Adjusted Performance

Very Weak

Over the last 90 days Penta Teknoloji Urunleri has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Kalekim Kimyevi Maddeler

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Penta Teknoloji and Kalekim Kimyevi

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

The idea behind Penta Teknoloji Urunleri and Kalekim Kimyevi Maddeler 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.