Correlation Between Sekerbank TAS and Marmaris Altinyunus

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

By analyzing existing cross correlation between Sekerbank TAS and Marmaris Altinyunus Turistik, you can compare the effects of market volatilities on Sekerbank TAS and Marmaris Altinyunus 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 Marmaris Altinyunus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sekerbank TAS and Marmaris Altinyunus.

Diversification Opportunities for Sekerbank TAS and Marmaris Altinyunus

0.68

Correlation Coefficient

Sekerbank TAS  Marmaris Altinyunus

Poor diversification

The 3 months correlation between Sekerbank and Marmaris is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Sekerbank TAS and Marmaris Altinyunus Turistik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marmaris Altinyunus 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 Marmaris Altinyunus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marmaris Altinyunus has no effect on the direction of Sekerbank TAS i.e., Sekerbank TAS and Marmaris Altinyunus go up and down completely randomly.

Pair Corralation between Sekerbank TAS and Marmaris Altinyunus

Assuming the 90 days trading horizon Sekerbank TAS is expected to under-perform the Marmaris Altinyunus. But the stock apears to be less risky and, when comparing its historical volatility, Sekerbank TAS is 1.11 times less risky than Marmaris Altinyunus. The stock trades about -0.1 of its potential returns per unit of risk. The Marmaris Altinyunus Turistik is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  82,600  in Marmaris Altinyunus Turistik on December 2, 2024 and sell it today you would lose (2,200) from holding Marmaris Altinyunus Turistik or give up 2.66% of portfolio value over 90 days.

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

Sekerbank TAS  vs.  Marmaris Altinyunus Turistik

Sekerbank TAS

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sekerbank TAS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain 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.

Marmaris Altinyunus

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Sekerbank TAS and Marmaris Altinyunus

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

The idea behind Sekerbank TAS and Marmaris Altinyunus Turistik 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.