Correlation Between Pinar Entegre and Jantsa Jant

Can any of the company-specific risk be diversified away by investing in both Pinar Entegre and Jantsa Jant 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 Pinar Entegre and Jantsa Jant into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pinar Entegre Et and Jantsa Jant Sanayi, you can compare the effects of market volatilities on Pinar Entegre and Jantsa Jant 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 Pinar Entegre with a short position of Jantsa Jant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinar Entegre and Jantsa Jant.

Diversification Opportunities for Pinar Entegre and Jantsa Jant

-0.48

Correlation Coefficient

Pinar Entegre  Jantsa Jant

Very good diversification

The 3 months correlation between Pinar and Jantsa is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Pinar Entegre Et and Jantsa Jant Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jantsa Jant Sanayi and Pinar Entegre 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 Pinar Entegre Et are associated (or correlated) with Jantsa Jant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jantsa Jant Sanayi has no effect on the direction of Pinar Entegre i.e., Pinar Entegre and Jantsa Jant go up and down completely randomly.

Pair Corralation between Pinar Entegre and Jantsa Jant

Assuming the 90 days trading horizon Pinar Entegre Et is expected to under-perform the Jantsa Jant. But the stock apears to be less risky and, when comparing its historical volatility, Pinar Entegre Et is 1.57 times less risky than Jantsa Jant. The stock trades about -0.04 of its potential returns per unit of risk. The Jantsa Jant Sanayi is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  2,686  in Jantsa Jant Sanayi on October 7, 2024 and sell it today you would lose (44.00) from holding Jantsa Jant Sanayi or give up 1.64% of portfolio value over 90 days.

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

Pinar Entegre Et  vs.  Jantsa Jant Sanayi

Pinar Entegre Et

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Pinar Entegre Et are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Pinar Entegre is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Jantsa Jant Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Jantsa Jant Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Pinar Entegre and Jantsa Jant

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

The idea behind Pinar Entegre Et and Jantsa Jant Sanayi 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.