Correlation Between Platform Turizm and Smart Gunes

Can any of the company-specific risk be diversified away by investing in both Platform Turizm and Smart Gunes 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 Platform Turizm and Smart Gunes into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Platform Turizm Tasimacilik and Smart Gunes Enerjisi, you can compare the effects of market volatilities on Platform Turizm and Smart Gunes 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 Platform Turizm with a short position of Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Platform Turizm and Smart Gunes.

Diversification Opportunities for Platform Turizm and Smart Gunes

0.74

Correlation Coefficient

Platform Turizm  Smart Gunes

Poor diversification

The 3 months correlation between Platform and Smart is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Platform Turizm Tasimacilik and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi and Platform Turizm 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 Platform Turizm Tasimacilik are associated (or correlated) with Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Platform Turizm i.e., Platform Turizm and Smart Gunes go up and down completely randomly.

Pair Corralation between Platform Turizm and Smart Gunes

Assuming the 90 days trading horizon Platform Turizm Tasimacilik is expected to generate 1.36 times more return on investment than Smart Gunes. However, Platform Turizm is 1.36 times more volatile than Smart Gunes Enerjisi. It trades about 0.22 of its potential returns per unit of risk. Smart Gunes Enerjisi is currently generating about 0.14 per unit of risk. If you would invest  2,062  in Platform Turizm Tasimacilik on October 20, 2024 and sell it today you would earn a total of  1,126  from holding Platform Turizm Tasimacilik or generate 54.61% return on investment over 90 days.

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

Platform Turizm Tasimacilik  vs.  Smart Gunes Enerjisi

Platform Turizm Tasi

Risk-Adjusted Performance

17 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Platform Turizm Tasimacilik are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Platform Turizm demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Smart Gunes Enerjisi

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Smart Gunes Enerjisi are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Smart Gunes demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Platform Turizm and Smart Gunes

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

The idea behind Platform Turizm Tasimacilik and Smart Gunes Enerjisi 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.