Correlation Between Sok Marketler and Kartonsan Karton

Can any of the company-specific risk be diversified away by investing in both Sok Marketler and Kartonsan Karton 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 Sok Marketler and Kartonsan Karton into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sok Marketler Ticaret and Kartonsan Karton Sanayi, you can compare the effects of market volatilities on Sok Marketler and Kartonsan Karton 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 Sok Marketler with a short position of Kartonsan Karton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sok Marketler and Kartonsan Karton.

Diversification Opportunities for Sok Marketler and Kartonsan Karton

-0.14

Correlation Coefficient

Sok Marketler  Kartonsan Karton

Good diversification

The 3 months correlation between Sok and Kartonsan is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Sok Marketler Ticaret and Kartonsan Karton Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartonsan Karton Sanayi and Sok Marketler 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 Sok Marketler Ticaret are associated (or correlated) with Kartonsan Karton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartonsan Karton Sanayi has no effect on the direction of Sok Marketler i.e., Sok Marketler and Kartonsan Karton go up and down completely randomly.

Pair Corralation between Sok Marketler and Kartonsan Karton

Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to under-perform the Kartonsan Karton. But the stock apears to be less risky and, when comparing its historical volatility, Sok Marketler Ticaret is 1.65 times less risky than Kartonsan Karton. The stock trades about -0.07 of its potential returns per unit of risk. The Kartonsan Karton Sanayi is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  8,765  in Kartonsan Karton Sanayi on September 24, 2024 and sell it today you would lose (25.00) from holding Kartonsan Karton Sanayi or give up 0.29% of portfolio value over 90 days.

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

Sok Marketler Ticaret  vs.  Kartonsan Karton Sanayi

Sok Marketler Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sok Marketler Ticaret has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Kartonsan Karton Sanayi

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kartonsan Karton Sanayi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward indicators, Kartonsan Karton is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Sok Marketler and Kartonsan Karton

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

The idea behind Sok Marketler Ticaret and Kartonsan Karton 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.