Correlation Between Alkim Kagit and Smart Gunes
Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Smart Gunes 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 Alkim Kagit and Smart Gunes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkim Kagit Sanayi and Smart Gunes Enerjisi, you can compare the effects of market volatilities on Alkim Kagit and Smart Gunes 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 Alkim Kagit with a short position of Smart Gunes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Smart Gunes.
Diversification Opportunities for Alkim Kagit and Smart Gunes
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alkim and Smart is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Smart Gunes Enerjisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Gunes Enerjisi and Alkim Kagit 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 Alkim Kagit Sanayi are associated (or correlated) with Smart Gunes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Gunes Enerjisi has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Smart Gunes go up and down completely randomly.
Pair Corralation between Alkim Kagit and Smart Gunes
Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to under-perform the Smart Gunes. But the stock apears to be less risky and, when comparing its historical volatility, Alkim Kagit Sanayi is 1.56 times less risky than Smart Gunes. The stock trades about 0.0 of its potential returns per unit of risk. The Smart Gunes Enerjisi is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 5,798 in Smart Gunes Enerjisi on August 30, 2024 and sell it today you would lose (1,872) from holding Smart Gunes Enerjisi or give up 32.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkim Kagit Sanayi vs. Smart Gunes Enerjisi
Performance |
| Timeline |
| Alkim Kagit Sanayi |
| Smart Gunes Enerjisi |
Alkim Kagit and Smart Gunes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkim Kagit and Smart Gunes
The main advantage of trading using opposite Alkim Kagit and Smart Gunes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Kagit position performs unexpectedly, Smart Gunes 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 Smart Gunes will offset losses from the drop in Smart Gunes' long position.| Alkim Kagit vs. Is Yatirim Ortakligi | Alkim Kagit vs. Euro Kapital Yatirim | Alkim Kagit vs. Atlas Menkul Kiymetler | Alkim Kagit vs. Dogus Gayrimenkul Yatirim |
| Smart Gunes vs. Creditwest Faktoring AS | Smart Gunes vs. MEGA METAL | Smart Gunes vs. Trabzonspor Sportif Yatirim | Smart Gunes vs. Sodas Sodyum Sanayi |
Check out your portfolio center.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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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