Correlation Between Turkiye Sise and Derimod Konfeksiyon

Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Derimod Konfeksiyon 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 Turkiye Sise and Derimod Konfeksiyon into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Sise ve and Derimod Konfeksiyon Ayakkabi, you can compare the effects of market volatilities on Turkiye Sise and Derimod Konfeksiyon 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 Turkiye Sise with a short position of Derimod Konfeksiyon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Derimod Konfeksiyon.

Diversification Opportunities for Turkiye Sise and Derimod Konfeksiyon

0.52

Correlation Coefficient

Turkiye Sise  Derimod Konfeksiyon

Very weak diversification

The 3 months correlation between Turkiye and Derimod is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Derimod Konfeksiyon Ayakkabi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Derimod Konfeksiyon and Turkiye Sise 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 Turkiye Sise ve are associated (or correlated) with Derimod Konfeksiyon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Derimod Konfeksiyon has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Derimod Konfeksiyon go up and down completely randomly.

Pair Corralation between Turkiye Sise and Derimod Konfeksiyon

Assuming the 90 days trading horizon Turkiye Sise is expected to generate 19.38 times less return on investment than Derimod Konfeksiyon. But when comparing it to its historical volatility, Turkiye Sise ve is 2.13 times less risky than Derimod Konfeksiyon. It trades about 0.03 of its potential returns per unit of risk. Derimod Konfeksiyon Ayakkabi is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  3,170  in Derimod Konfeksiyon Ayakkabi on October 5, 2024 and sell it today you would earn a total of  808.00  from holding Derimod Konfeksiyon Ayakkabi or generate 25.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Turkiye Sise ve  vs.  Derimod Konfeksiyon Ayakkabi

Turkiye Sise ve

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sise ve are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Turkiye Sise may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Derimod Konfeksiyon

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Derimod Konfeksiyon Ayakkabi are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Derimod Konfeksiyon demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Turkiye Sise and Derimod Konfeksiyon

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

The idea behind Turkiye Sise ve and Derimod Konfeksiyon Ayakkabi 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.

Check out your portfolio center.

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.