Correlation Between Haci Omer and Kustur Kusadasi

Can any of the company-specific risk be diversified away by investing in both Haci Omer and Kustur Kusadasi 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 Haci Omer and Kustur Kusadasi into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Haci Omer Sabanci and Kustur Kusadasi Turizm, you can compare the effects of market volatilities on Haci Omer and Kustur Kusadasi 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 Haci Omer with a short position of Kustur Kusadasi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Haci Omer and Kustur Kusadasi.

Diversification Opportunities for Haci Omer and Kustur Kusadasi

0.02

Correlation Coefficient

Haci Omer  Kustur Kusadasi

Significant diversification

The 3 months correlation between Haci and Kustur is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Haci Omer Sabanci and Kustur Kusadasi Turizm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kustur Kusadasi Turizm and Haci Omer 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 Haci Omer Sabanci are associated (or correlated) with Kustur Kusadasi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kustur Kusadasi Turizm has no effect on the direction of Haci Omer i.e., Haci Omer and Kustur Kusadasi go up and down completely randomly.

Pair Corralation between Haci Omer and Kustur Kusadasi

Assuming the 90 days trading horizon Haci Omer is expected to generate 1.6 times less return on investment than Kustur Kusadasi. But when comparing it to its historical volatility, Haci Omer Sabanci is 1.88 times less risky than Kustur Kusadasi. It trades about 0.07 of its potential returns per unit of risk. Kustur Kusadasi Turizm is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  247,700  in Kustur Kusadasi Turizm on October 2, 2024 and sell it today you would earn a total of  31,550  from holding Kustur Kusadasi Turizm or generate 12.74% return on investment over 90 days.

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

Haci Omer Sabanci  vs.  Kustur Kusadasi Turizm

Haci Omer Sabanci

Risk-Adjusted Performance

5 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Haci Omer Sabanci are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Haci Omer may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Kustur Kusadasi Turizm

Risk-Adjusted Performance

4 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kustur Kusadasi Turizm are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kustur Kusadasi demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haci Omer and Kustur Kusadasi

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

The idea behind Haci Omer Sabanci and Kustur Kusadasi Turizm 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.