Correlation Between Sekerbank TAS and Iskenderun Demir

Can any of the company-specific risk be diversified away by investing in both Sekerbank TAS and Iskenderun Demir 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 Sekerbank TAS and Iskenderun Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Sekerbank TAS and Iskenderun Demir

0.77

Correlation Coefficient

Sekerbank TAS  Iskenderun Demir

Poor diversification

The 3 months correlation between Sekerbank and Iskenderun is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Iskenderun Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iskenderun Demir and Sekerbank TAS 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 Sekerbank TAS are associated (or correlated) with Iskenderun Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iskenderun Demir has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Iskenderun Demir go up and down completely randomly.

Pair Corralation between Sekerbank TAS and Iskenderun Demir

Assuming the 90 days trading horizon Sekerbank TAS is expected to under-perform the Iskenderun Demir. In addition to that, Sekerbank TAS is 1.39 times more volatile than Iskenderun Demir ve. It trades about -0.01 of its total potential returns per unit of risk. Iskenderun Demir ve is currently generating about 0.04 per unit of volatility. If you would invest  3,549  in Iskenderun Demir ve on September 23, 2024 and sell it today you would earn a total of  609.00  from holding Iskenderun Demir ve or generate 17.16% return on investment over 90 days.

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

Sekerbank TAS  vs.  Iskenderun Demir ve

Sekerbank TAS

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Sekerbank TAS are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Sekerbank TAS is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Iskenderun Demir

Risk-Adjusted Performance

11 of 100

Good

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

Pair Trading with Sekerbank TAS and Iskenderun Demir

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

The idea behind Sekerbank TAS and Iskenderun Demir 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 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.