Correlation Between Ufuk Yatirim and KOC METALURJI

Can any of the company-specific risk be diversified away by investing in both Ufuk Yatirim and KOC METALURJI 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 Ufuk Yatirim and KOC METALURJI into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Ufuk Yatirim Yonetim and KOC METALURJI, you can compare the effects of market volatilities on Ufuk Yatirim and KOC METALURJI 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 Ufuk Yatirim with a short position of KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ufuk Yatirim and KOC METALURJI.

Diversification Opportunities for Ufuk Yatirim and KOC METALURJI

0.63

Correlation Coefficient

Ufuk Yatirim  KOC METALURJI

Poor diversification

The 3 months correlation between Ufuk and KOC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Ufuk Yatirim Yonetim and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI and Ufuk Yatirim 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 Ufuk Yatirim Yonetim are associated (or correlated) with KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Ufuk Yatirim i.e., Ufuk Yatirim and KOC METALURJI go up and down completely randomly.

Pair Corralation between Ufuk Yatirim and KOC METALURJI

Assuming the 90 days trading horizon Ufuk Yatirim Yonetim is expected to generate 1.13 times more return on investment than KOC METALURJI. However, Ufuk Yatirim is 1.13 times more volatile than KOC METALURJI. It trades about 0.09 of its potential returns per unit of risk. KOC METALURJI is currently generating about -0.01 per unit of risk. If you would invest  44,950  in Ufuk Yatirim Yonetim on October 22, 2024 and sell it today you would earn a total of  6,950  from holding Ufuk Yatirim Yonetim or generate 15.46% return on investment over 90 days.

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

Ufuk Yatirim Yonetim  vs.  KOC METALURJI

Ufuk Yatirim Yonetim

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ufuk Yatirim Yonetim are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Ufuk Yatirim unveiled solid returns over the last few months and may actually be approaching a breakup point.

KOC METALURJI

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Ufuk Yatirim and KOC METALURJI

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

The idea behind Ufuk Yatirim Yonetim and KOC METALURJI 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.