Correlation Between Yibitas Yozgat and Konya Cimento

Can any of the company-specific risk be diversified away by investing in both Yibitas Yozgat and Konya Cimento 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 Yibitas Yozgat and Konya Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yibitas Yozgat Isci and Konya Cimento Sanayi, you can compare the effects of market volatilities on Yibitas Yozgat and Konya Cimento 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 Yibitas Yozgat with a short position of Konya Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yibitas Yozgat and Konya Cimento.

Diversification Opportunities for Yibitas Yozgat and Konya Cimento

-0.24

Correlation Coefficient

Yibitas Yozgat  Konya Cimento

Very good diversification

The 3 months correlation between Yibitas and Konya is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Yibitas Yozgat Isci and Konya Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konya Cimento Sanayi and Yibitas Yozgat 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 Yibitas Yozgat Isci are associated (or correlated) with Konya Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konya Cimento Sanayi has no effect on the direction of Yibitas Yozgat i.e., Yibitas Yozgat and Konya Cimento go up and down completely randomly.

Pair Corralation between Yibitas Yozgat and Konya Cimento

Assuming the 90 days trading horizon Yibitas Yozgat is expected to generate 1.16 times less return on investment than Konya Cimento. In addition to that, Yibitas Yozgat is 1.08 times more volatile than Konya Cimento Sanayi. It trades about 0.05 of its total potential returns per unit of risk. Konya Cimento Sanayi is currently generating about 0.06 per unit of volatility. If you would invest  311,100  in Konya Cimento Sanayi on October 11, 2024 and sell it today you would earn a total of  343,900  from holding Konya Cimento Sanayi or generate 110.54% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	99.8%
Values	Daily Returns

Yibitas Yozgat Isci  vs.  Konya Cimento Sanayi

Yibitas Yozgat Isci

Risk-Adjusted Performance

0 of 100

Weak

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

Konya Cimento Sanayi

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Konya Cimento Sanayi are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Konya Cimento may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Yibitas Yozgat and Konya Cimento

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

The idea behind Yibitas Yozgat Isci and Konya Cimento 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.