Correlation Between Silverline Endustri and Celik Halat

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

By analyzing existing cross correlation between Silverline Endustri ve and Celik Halat ve, you can compare the effects of market volatilities on Silverline Endustri and Celik Halat 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 Silverline Endustri with a short position of Celik Halat. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silverline Endustri and Celik Halat.

Diversification Opportunities for Silverline Endustri and Celik Halat

-0.35

Correlation Coefficient

Silverline Endustri  Celik Halat

Very good diversification

The 3 months correlation between Silverline and Celik is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Silverline Endustri ve and Celik Halat ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celik Halat ve and Silverline Endustri 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 Silverline Endustri ve are associated (or correlated) with Celik Halat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celik Halat ve has no effect on the direction of Silverline Endustri i.e., Silverline Endustri and Celik Halat go up and down completely randomly.

Pair Corralation between Silverline Endustri and Celik Halat

Assuming the 90 days trading horizon Silverline Endustri is expected to generate 1.83 times less return on investment than Celik Halat. But when comparing it to its historical volatility, Silverline Endustri ve is 1.59 times less risky than Celik Halat. It trades about 0.03 of its potential returns per unit of risk. Celik Halat ve is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  1,583  in Celik Halat ve on October 4, 2024 and sell it today you would earn a total of  531.00  from holding Celik Halat ve or generate 33.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Silverline Endustri ve  vs.  Celik Halat ve

Silverline Endustri

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Silverline Endustri ve are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Silverline Endustri is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Celik Halat ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Celik Halat ve 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 February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Silverline Endustri and Celik Halat

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

The idea behind Silverline Endustri ve and Celik Halat ve 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.