Correlation Between Alkim Kagit and Trabzon Liman
Can any of the company-specific risk be diversified away by investing in both Alkim Kagit and Trabzon Liman 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 Trabzon Liman 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 Trabzon Liman Isletmeciligi, you can compare the effects of market volatilities on Alkim Kagit and Trabzon Liman 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 Trabzon Liman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkim Kagit and Trabzon Liman.
Diversification Opportunities for Alkim Kagit and Trabzon Liman
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Alkim and Trabzon is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Alkim Kagit Sanayi and Trabzon Liman Isletmeciligi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trabzon Liman Isletm 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 Trabzon Liman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trabzon Liman Isletm has no effect on the direction of Alkim Kagit i.e., Alkim Kagit and Trabzon Liman go up and down completely randomly.
Pair Corralation between Alkim Kagit and Trabzon Liman
Assuming the 90 days trading horizon Alkim Kagit Sanayi is expected to under-perform the Trabzon Liman. But the stock apears to be less risky and, when comparing its historical volatility, Alkim Kagit Sanayi is 1.09 times less risky than Trabzon Liman. The stock trades about -0.03 of its potential returns per unit of risk. The Trabzon Liman Isletmeciligi is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,815 in Trabzon Liman Isletmeciligi on September 2, 2024 and sell it today you would lose (220.00) from holding Trabzon Liman Isletmeciligi or give up 2.24% 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. Trabzon Liman Isletmeciligi
Performance |
| Timeline |
| Alkim Kagit Sanayi |
| Trabzon Liman Isletm |
Alkim Kagit and Trabzon Liman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkim Kagit and Trabzon Liman
The main advantage of trading using opposite Alkim Kagit and Trabzon Liman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkim Kagit position performs unexpectedly, Trabzon Liman 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 Trabzon Liman will offset losses from the drop in Trabzon Liman's long position.| Alkim Kagit vs. Sekerbank TAS | Alkim Kagit vs. Gentas Genel Metal | Alkim Kagit vs. Politeknik Metal Sanayi | Alkim Kagit vs. Cuhadaroglu Metal Sanayi |
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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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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