Correlation Between Turkiye Sinai and Saray Matbaacilik

Can any of the company-specific risk be diversified away by investing in both Turkiye Sinai and Saray Matbaacilik 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 Turkiye Sinai and Saray Matbaacilik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Sinai Kalkinma and Saray Matbaacilik Kagitcilik, you can compare the effects of market volatilities on Turkiye Sinai and Saray Matbaacilik 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 Turkiye Sinai with a short position of Saray Matbaacilik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sinai and Saray Matbaacilik.

Diversification Opportunities for Turkiye Sinai and Saray Matbaacilik

-0.55

Correlation Coefficient

Turkiye Sinai  Saray Matbaacilik

Excellent diversification

The 3 months correlation between Turkiye and Saray is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sinai Kalkinma and Saray Matbaacilik Kagitcilik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saray Matbaacilik and Turkiye Sinai 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 Turkiye Sinai Kalkinma are associated (or correlated) with Saray Matbaacilik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saray Matbaacilik has no effect on the direction of Turkiye Sinai i.e., Turkiye Sinai and Saray Matbaacilik go up and down completely randomly.

Pair Corralation between Turkiye Sinai and Saray Matbaacilik

Assuming the 90 days trading horizon Turkiye Sinai Kalkinma is expected to under-perform the Saray Matbaacilik. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Sinai Kalkinma is 1.09 times less risky than Saray Matbaacilik. The stock trades about -0.01 of its potential returns per unit of risk. The Saray Matbaacilik Kagitcilik is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,892  in Saray Matbaacilik Kagitcilik on October 9, 2024 and sell it today you would earn a total of  30.00  from holding Saray Matbaacilik Kagitcilik or generate 1.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

Turkiye Sinai Kalkinma  vs.  Saray Matbaacilik Kagitcilik

Turkiye Sinai Kalkinma

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sinai Kalkinma are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Turkiye Sinai unveiled solid returns over the last few months and may actually be approaching a breakup point.

Saray Matbaacilik

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Saray Matbaacilik Kagitcilik has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest inconsistent performance, the Stock's forward indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Turkiye Sinai and Saray Matbaacilik

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

The idea behind Turkiye Sinai Kalkinma and Saray Matbaacilik Kagitcilik 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.