Correlation Between Soktas Tekstil and Eminis Ambalaj

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Can any of the company-specific risk be diversified away by investing in both Soktas Tekstil and Eminis Ambalaj 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 Soktas Tekstil and Eminis Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Soktas Tekstil Sanayi and Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Soktas Tekstil and Eminis Ambalaj 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 Soktas Tekstil with a short position of Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Soktas Tekstil and Eminis Ambalaj.

Diversification Opportunities for Soktas Tekstil and Eminis Ambalaj

SoktasEminisDiversified AwaySoktasEminisDiversified Away100%
0.38
  Correlation Coefficient

Weak diversification

The 3 months correlation between Soktas and Eminis is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Soktas Tekstil Sanayi and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj Sanayi and Soktas Tekstil 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 Soktas Tekstil Sanayi are associated (or correlated) with Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Soktas Tekstil i.e., Soktas Tekstil and Eminis Ambalaj go up and down completely randomly.

Pair Corralation between Soktas Tekstil and Eminis Ambalaj

Assuming the 90 days trading horizon Soktas Tekstil Sanayi is expected to generate 0.72 times more return on investment than Eminis Ambalaj. However, Soktas Tekstil Sanayi is 1.39 times less risky than Eminis Ambalaj. It trades about -0.09 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about -0.07 per unit of risk. If you would invest  591.00  in Soktas Tekstil Sanayi on October 21, 2024 and sell it today you would lose (101.00) from holding Soktas Tekstil Sanayi or give up 17.09% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Soktas Tekstil Sanayi  vs.  Eminis Ambalaj Sanayi

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -25-20-15-10-505
JavaScript chart by amCharts 3.21.15SKTAS EMNIS
       Timeline  
Soktas Tekstil Sanayi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Soktas Tekstil Sanayi 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan4.44.64.855.25.45.65.8
Eminis Ambalaj Sanayi 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Eminis Ambalaj Sanayi 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.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan210220230240250260270280290

Soktas Tekstil and Eminis Ambalaj Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.21-3.9-2.6-1.290.01.212.443.684.91 0.0250.0300.0350.040
JavaScript chart by amCharts 3.21.15SKTAS EMNIS
       Returns  

Pair Trading with Soktas Tekstil and Eminis Ambalaj

The main advantage of trading using opposite Soktas Tekstil and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Soktas Tekstil position performs unexpectedly, Eminis Ambalaj 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 Eminis Ambalaj will offset losses from the drop in Eminis Ambalaj's long position.
The idea behind Soktas Tekstil Sanayi and Eminis Ambalaj Sanayi 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.

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