Correlation Between Sodas Sodyum and Lokman Hekim

Can any of the company-specific risk be diversified away by investing in both Sodas Sodyum and Lokman Hekim 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 Sodas Sodyum and Lokman Hekim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sodas Sodyum Sanayi and Lokman Hekim Engurusag, you can compare the effects of market volatilities on Sodas Sodyum and Lokman Hekim 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 Sodas Sodyum with a short position of Lokman Hekim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sodas Sodyum and Lokman Hekim.

Diversification Opportunities for Sodas Sodyum and Lokman Hekim

0.0

Correlation Coefficient

Sodas Sodyum  Lokman Hekim

Pay attention - limited upside

The 3 months correlation between Sodas and Lokman is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sodas Sodyum Sanayi and Lokman Hekim Engurusag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lokman Hekim Engurusag and Sodas Sodyum 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 Sodas Sodyum Sanayi are associated (or correlated) with Lokman Hekim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lokman Hekim Engurusag has no effect on the direction of Sodas Sodyum i.e., Sodas Sodyum and Lokman Hekim go up and down completely randomly.

Pair Corralation between Sodas Sodyum and Lokman Hekim

If you would invest  3,076  in Sodas Sodyum Sanayi on October 4, 2024 and sell it today you would earn a total of  7,524  from holding Sodas Sodyum Sanayi or generate 244.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Sodas Sodyum Sanayi  vs.  Lokman Hekim Engurusag

Sodas Sodyum Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Lokman Hekim Engurusag

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Lokman Hekim Engurusag are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak forward indicators, Lokman Hekim may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Sodas Sodyum and Lokman Hekim

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

The idea behind Sodas Sodyum Sanayi and Lokman Hekim Engurusag 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.