Correlation Between Trabzonspor Sportif and Penguen Gida

Can any of the company-specific risk be diversified away by investing in both Trabzonspor Sportif 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 Trabzonspor Sportif and Penguen Gida into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Trabzonspor Sportif Yatirim and Penguen Gida Sanayi, you can compare the effects of market volatilities on Trabzonspor Sportif 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 Trabzonspor Sportif with a short position of Penguen Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trabzonspor Sportif and Penguen Gida.

Diversification Opportunities for Trabzonspor Sportif and Penguen Gida

0.07

Correlation Coefficient

Trabzonspor Sportif  Penguen Gida

Significant diversification

The 3 months correlation between Trabzonspor and Penguen is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Trabzonspor Sportif Yatirim 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 Trabzonspor Sportif 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 Trabzonspor Sportif Yatirim 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 Trabzonspor Sportif i.e., Trabzonspor Sportif and Penguen Gida go up and down completely randomly.

Pair Corralation between Trabzonspor Sportif and Penguen Gida

Assuming the 90 days trading horizon Trabzonspor Sportif Yatirim is expected to generate 2.47 times more return on investment than Penguen Gida. However, Trabzonspor Sportif is 2.47 times more volatile than Penguen Gida Sanayi. It trades about 0.35 of its potential returns per unit of risk. Penguen Gida Sanayi is currently generating about 0.0 per unit of risk. If you would invest  89.00  in Trabzonspor Sportif Yatirim on October 22, 2024 and sell it today you would earn a total of  29.00  from holding Trabzonspor Sportif Yatirim or generate 32.58% return on investment over 90 days.

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

Trabzonspor Sportif Yatirim  vs.  Penguen Gida Sanayi

Trabzonspor Sportif

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Trabzonspor Sportif Yatirim are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain forward indicators, Trabzonspor Sportif demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Penguen Gida Sanayi

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Penguen Gida Sanayi are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Penguen Gida may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Trabzonspor Sportif and Penguen Gida

The main advantage of trading using opposite Trabzonspor Sportif and Penguen Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trabzonspor Sportif 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 Trabzonspor Sportif Yatirim 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.