Correlation Between Pegasus Hava and Konya Cimento

Can any of the company-specific risk be diversified away by investing in both Pegasus Hava and Konya Cimento 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 Pegasus Hava and Konya Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pegasus Hava Tasimaciligi and Konya Cimento Sanayi, you can compare the effects of market volatilities on Pegasus Hava and Konya Cimento 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 Pegasus Hava with a short position of Konya Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pegasus Hava and Konya Cimento.

Diversification Opportunities for Pegasus Hava and Konya Cimento

-0.29

Correlation Coefficient

Pegasus Hava  Konya Cimento

Very good diversification

The 3 months correlation between Pegasus and Konya is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Pegasus Hava Tasimaciligi and Konya Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konya Cimento Sanayi and Pegasus Hava 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 Pegasus Hava Tasimaciligi are associated (or correlated) with Konya Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konya Cimento Sanayi has no effect on the direction of Pegasus Hava i.e., Pegasus Hava and Konya Cimento go up and down completely randomly.

Pair Corralation between Pegasus Hava and Konya Cimento

Assuming the 90 days trading horizon Pegasus Hava Tasimaciligi is expected to generate 0.74 times more return on investment than Konya Cimento. However, Pegasus Hava Tasimaciligi is 1.36 times less risky than Konya Cimento. It trades about 0.08 of its potential returns per unit of risk. Konya Cimento Sanayi is currently generating about -0.01 per unit of risk. If you would invest  14,936  in Pegasus Hava Tasimaciligi on September 23, 2024 and sell it today you would earn a total of  7,194  from holding Pegasus Hava Tasimaciligi or generate 48.17% return on investment over 90 days.

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

Pegasus Hava Tasimaciligi  vs.  Konya Cimento Sanayi

Pegasus Hava Tasimaciligi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pegasus Hava Tasimaciligi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent 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.

Konya Cimento Sanayi

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Konya Cimento Sanayi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Konya Cimento may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Pegasus Hava and Konya Cimento

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

The idea behind Pegasus Hava Tasimaciligi and Konya Cimento 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.