Correlation Between Turkiye Sise and Kordsa Global

Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Kordsa Global 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 Kordsa Global 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 Kordsa Global Endustriyel, you can compare the effects of market volatilities on Turkiye Sise and Kordsa Global 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 Kordsa Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Kordsa Global.

Diversification Opportunities for Turkiye Sise and Kordsa Global

0.45

Correlation Coefficient

Turkiye Sise  Kordsa Global

Very weak diversification

The 3 months correlation between Turkiye and Kordsa is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Kordsa Global Endustriyel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kordsa Global Endustriyel 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 Kordsa Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kordsa Global Endustriyel has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Kordsa Global go up and down completely randomly.

Pair Corralation between Turkiye Sise and Kordsa Global

Assuming the 90 days trading horizon Turkiye Sise is expected to generate 1.91 times less return on investment than Kordsa Global. But when comparing it to its historical volatility, Turkiye Sise ve is 1.15 times less risky than Kordsa Global. It trades about 0.01 of its potential returns per unit of risk. Kordsa Global Endustriyel is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  7,270  in Kordsa Global Endustriyel on October 27, 2024 and sell it today you would lose (125.00) from holding Kordsa Global Endustriyel or give up 1.72% of portfolio value over 90 days.

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

Turkiye Sise ve  vs.  Kordsa Global Endustriyel

Turkiye Sise ve

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Turkiye Sise ve has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Turkiye Sise is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Kordsa Global Endustriyel

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Turkiye Sise and Kordsa Global

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

The idea behind Turkiye Sise ve and Kordsa Global Endustriyel 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.