Correlation Between Pergamon Status and Cemtas Celik

Can any of the company-specific risk be diversified away by investing in both Pergamon Status and Cemtas Celik 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 Pergamon Status and Cemtas Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Pergamon Status Dis and Cemtas Celik Makina, you can compare the effects of market volatilities on Pergamon Status and Cemtas Celik 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 Pergamon Status with a short position of Cemtas Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pergamon Status and Cemtas Celik.

Diversification Opportunities for Pergamon Status and Cemtas Celik

-0.62

Correlation Coefficient

Pergamon Status  Cemtas Celik

Excellent diversification

The 3 months correlation between Pergamon and Cemtas is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Pergamon Status Dis and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina and Pergamon Status 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 Pergamon Status Dis are associated (or correlated) with Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Pergamon Status i.e., Pergamon Status and Cemtas Celik go up and down completely randomly.

Pair Corralation between Pergamon Status and Cemtas Celik

Assuming the 90 days trading horizon Pergamon Status is expected to generate 2.05 times less return on investment than Cemtas Celik. But when comparing it to its historical volatility, Pergamon Status Dis is 4.18 times less risky than Cemtas Celik. It trades about 0.07 of its potential returns per unit of risk. Cemtas Celik Makina is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,095  in Cemtas Celik Makina on October 5, 2024 and sell it today you would lose (160.00) from holding Cemtas Celik Makina or give up 14.61% of portfolio value over 90 days.

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

Pergamon Status Dis  vs.  Cemtas Celik Makina

Pergamon Status Dis

Risk-Adjusted Performance

0 of 100

Very Weak

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

Cemtas Celik Makina

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cemtas Celik Makina are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Cemtas Celik demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Pergamon Status and Cemtas Celik

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

The idea behind Pergamon Status Dis and Cemtas Celik Makina 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.