Correlation Between Sodas Sodyum and Penguen Gida

Can any of the company-specific risk be diversified away by investing in both Sodas Sodyum and Penguen Gida 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 Penguen Gida 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 Penguen Gida Sanayi, you can compare the effects of market volatilities on Sodas Sodyum and Penguen Gida 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 Penguen Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sodas Sodyum and Penguen Gida.

Diversification Opportunities for Sodas Sodyum and Penguen Gida

-0.08

Correlation Coefficient

Sodas Sodyum  Penguen Gida

Good diversification

The 3 months correlation between Sodas and Penguen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Sodas Sodyum Sanayi and Penguen Gida Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Penguen Gida Sanayi 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 Penguen Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Penguen Gida Sanayi has no effect on the direction of Sodas Sodyum i.e., Sodas Sodyum and Penguen Gida go up and down completely randomly.

Pair Corralation between Sodas Sodyum and Penguen Gida

Assuming the 90 days trading horizon Sodas Sodyum Sanayi is expected to under-perform the Penguen Gida. In addition to that, Sodas Sodyum is 1.39 times more volatile than Penguen Gida Sanayi. It trades about -0.03 of its total potential returns per unit of risk. Penguen Gida Sanayi is currently generating about 0.13 per unit of volatility. If you would invest  595.00  in Penguen Gida Sanayi on October 6, 2024 and sell it today you would earn a total of  85.00  from holding Penguen Gida Sanayi or generate 14.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Sodas Sodyum Sanayi  vs.  Penguen Gida Sanayi

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 current stock price confusion, may contribute to short-horizon losses for the traders.

Penguen Gida Sanayi

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Penguen Gida demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Sodas Sodyum and Penguen Gida

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

The idea behind Sodas Sodyum Sanayi and Penguen Gida 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.

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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.