Correlation Between Seker Finansal and KOC METALURJI

Can any of the company-specific risk be diversified away by investing in both Seker Finansal and KOC METALURJI 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 Seker Finansal and KOC METALURJI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Seker Finansal Kiralama and KOC METALURJI, you can compare the effects of market volatilities on Seker Finansal and KOC METALURJI 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 Seker Finansal with a short position of KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seker Finansal and KOC METALURJI.

Diversification Opportunities for Seker Finansal and KOC METALURJI

0.0

Correlation Coefficient

Seker Finansal  KOC METALURJI

Pay attention - limited upside

The 3 months correlation between Seker and KOC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Seker Finansal Kiralama and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI and Seker Finansal 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 Seker Finansal Kiralama are associated (or correlated) with KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Seker Finansal i.e., Seker Finansal and KOC METALURJI go up and down completely randomly.

Pair Corralation between Seker Finansal and KOC METALURJI

Assuming the 90 days trading horizon Seker Finansal Kiralama is expected to generate 0.99 times more return on investment than KOC METALURJI. However, Seker Finansal Kiralama is 1.01 times less risky than KOC METALURJI. It trades about -0.02 of its potential returns per unit of risk. KOC METALURJI is currently generating about -0.15 per unit of risk. If you would invest  771.00  in Seker Finansal Kiralama on December 22, 2024 and sell it today you would lose (48.00) from holding Seker Finansal Kiralama or give up 6.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

Seker Finansal Kiralama  vs.  KOC METALURJI

Seker Finansal Kiralama

Risk-Adjusted Performance

Very Weak

Over the last 90 days Seker Finansal Kiralama has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Seker Finansal is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

KOC METALURJI

Risk-Adjusted Performance

Very Weak

Over the last 90 days KOC METALURJI has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent 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 Seker Finansal and KOC METALURJI

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

The idea behind Seker Finansal Kiralama and KOC METALURJI 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 Transaction History module to view history of all your transactions and understand their impact on performance.