Correlation Between Yunsa Yunlu and Ekiz Kimya

Can any of the company-specific risk be diversified away by investing in both Yunsa Yunlu and Ekiz Kimya 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 Yunsa Yunlu and Ekiz Kimya into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yunsa Yunlu Sanayi and Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Yunsa Yunlu and Ekiz Kimya 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 Yunsa Yunlu with a short position of Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunsa Yunlu and Ekiz Kimya.

Diversification Opportunities for Yunsa Yunlu and Ekiz Kimya

0.24

Correlation Coefficient

Yunsa Yunlu  Ekiz Kimya

Modest diversification

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

Pair Corralation between Yunsa Yunlu and Ekiz Kimya

Assuming the 90 days trading horizon Yunsa Yunlu Sanayi is expected to generate 0.93 times more return on investment than Ekiz Kimya. However, Yunsa Yunlu Sanayi is 1.08 times less risky than Ekiz Kimya. It trades about 0.04 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.04 per unit of risk. If you would invest  618.00  in Yunsa Yunlu Sanayi on December 21, 2024 and sell it today you would earn a total of  25.00  from holding Yunsa Yunlu Sanayi or generate 4.05% return on investment over 90 days.

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

Yunsa Yunlu Sanayi  vs.  Ekiz Kimya Sanayi

Yunsa Yunlu Sanayi

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yunsa Yunlu Sanayi are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Yunsa Yunlu may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Ekiz Kimya Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ekiz Kimya Sanayi 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.

Pair Trading with Yunsa Yunlu and Ekiz Kimya

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

The idea behind Yunsa Yunlu Sanayi and Ekiz Kimya 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..