Correlation Between SASA Polyester and Kontrolmatik Teknoloji

Can any of the company-specific risk be diversified away by investing in both SASA Polyester and Kontrolmatik Teknoloji 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 SASA Polyester and Kontrolmatik Teknoloji into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SASA Polyester Sanayi and Kontrolmatik Teknoloji Enerji, you can compare the effects of market volatilities on SASA Polyester and Kontrolmatik Teknoloji 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 SASA Polyester with a short position of Kontrolmatik Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and Kontrolmatik Teknoloji.

Diversification Opportunities for SASA Polyester and Kontrolmatik Teknoloji

0.87

Correlation Coefficient

SASA Polyester  Kontrolmatik Teknoloji

Very poor diversification

The 3 months correlation between SASA and Kontrolmatik is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi and Kontrolmatik Teknoloji Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kontrolmatik Teknoloji and SASA Polyester 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 SASA Polyester Sanayi are associated (or correlated) with Kontrolmatik Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kontrolmatik Teknoloji has no effect on the direction of SASA Polyester i.e., SASA Polyester and Kontrolmatik Teknoloji go up and down completely randomly.

Pair Corralation between SASA Polyester and Kontrolmatik Teknoloji

Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to generate 0.86 times more return on investment than Kontrolmatik Teknoloji. However, SASA Polyester Sanayi is 1.16 times less risky than Kontrolmatik Teknoloji. It trades about -0.11 of its potential returns per unit of risk. Kontrolmatik Teknoloji Enerji is currently generating about -0.19 per unit of risk. If you would invest  404.00  in SASA Polyester Sanayi on December 24, 2024 and sell it today you would lose (73.00) from holding SASA Polyester Sanayi or give up 18.07% of portfolio value over 90 days.

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

SASA Polyester Sanayi  vs.  Kontrolmatik Teknoloji Enerji

SASA Polyester Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days SASA Polyester Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Kontrolmatik Teknoloji

Risk-Adjusted Performance

Very Weak

Over the last 90 days Kontrolmatik Teknoloji Enerji 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 April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with SASA Polyester and Kontrolmatik Teknoloji

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

The idea behind SASA Polyester Sanayi and Kontrolmatik Teknoloji Enerji 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.