Correlation Between Turkiye Is and Cemtas Celik
Can any of the company-specific risk be diversified away by investing in both Turkiye Is and Cemtas Celik 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 Turkiye Is and Cemtas Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Is Bankasi and Cemtas Celik Makina, you can compare the effects of market volatilities on Turkiye Is and Cemtas Celik 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 Turkiye Is with a short position of Cemtas Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Is and Cemtas Celik.
Diversification Opportunities for Turkiye Is and Cemtas Celik
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Turkiye and Cemtas is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Is Bankasi and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina and Turkiye Is 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 Turkiye Is Bankasi are associated (or correlated) with Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Turkiye Is i.e., Turkiye Is and Cemtas Celik go up and down completely randomly.
Pair Corralation between Turkiye Is and Cemtas Celik
Assuming the 90 days trading horizon Turkiye Is Bankasi is expected to generate 1.16 times more return on investment than Cemtas Celik. However, Turkiye Is is 1.16 times more volatile than Cemtas Celik Makina. It trades about 0.12 of its potential returns per unit of risk. Cemtas Celik Makina is currently generating about 0.13 per unit of risk. If you would invest 50,099,500 in Turkiye Is Bankasi on December 1, 2024 and sell it today you would earn a total of 2,400,500 from holding Turkiye Is Bankasi or generate 4.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Turkiye Is Bankasi vs. Cemtas Celik Makina
Performance |
| Timeline |
| Turkiye Is Bankasi |
| Cemtas Celik Makina |
Turkiye Is and Cemtas Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Is and Cemtas Celik
The main advantage of trading using opposite Turkiye Is and Cemtas Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Is position performs unexpectedly, Cemtas Celik 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 Cemtas Celik will offset losses from the drop in Cemtas Celik's long position.| Turkiye Is vs. Gentas Genel Metal | Turkiye Is vs. Koza Anadolu Metal | Turkiye Is vs. KOC METALURJI | Turkiye Is vs. Bms Birlesik Metal |
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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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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