Correlation Between Iskenderun Demir and Nuh Cimento
Can any of the company-specific risk be diversified away by investing in both Iskenderun Demir and Nuh 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 Iskenderun Demir and Nuh Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Iskenderun Demir ve and Nuh Cimento Sanayi, you can compare the effects of market volatilities on Iskenderun Demir and Nuh 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 Iskenderun Demir with a short position of Nuh Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Iskenderun Demir and Nuh Cimento.
Diversification Opportunities for Iskenderun Demir and Nuh Cimento
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Iskenderun and Nuh is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Iskenderun Demir ve and Nuh Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nuh Cimento Sanayi and Iskenderun Demir 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 Iskenderun Demir ve are associated (or correlated) with Nuh Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nuh Cimento Sanayi has no effect on the direction of Iskenderun Demir i.e., Iskenderun Demir and Nuh Cimento go up and down completely randomly.
Pair Corralation between Iskenderun Demir and Nuh Cimento
Assuming the 90 days trading horizon Iskenderun Demir is expected to generate 4.59 times less return on investment than Nuh Cimento. But when comparing it to its historical volatility, Iskenderun Demir ve is 2.02 times less risky than Nuh Cimento. It trades about 0.18 of its potential returns per unit of risk. Nuh Cimento Sanayi is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest 25,475 in Nuh Cimento Sanayi on August 25, 2024 and sell it today you would earn a total of 5,850 from holding Nuh Cimento Sanayi or generate 22.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Iskenderun Demir ve vs. Nuh Cimento Sanayi
Performance |
| Timeline |
| Iskenderun Demir |
| Nuh Cimento Sanayi |
Iskenderun Demir and Nuh Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Iskenderun Demir and Nuh Cimento
The main advantage of trading using opposite Iskenderun Demir and Nuh Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Iskenderun Demir position performs unexpectedly, Nuh 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 Nuh Cimento will offset losses from the drop in Nuh Cimento's long position.| Iskenderun Demir vs. Bms Birlesik Metal | Iskenderun Demir vs. MEGA METAL | Iskenderun Demir vs. Datagate Bilgisayar Malzemeleri | Iskenderun Demir vs. Akcansa Cimento Sanayi |
| Nuh Cimento vs. Iskenderun Demir ve | Nuh Cimento vs. Vestel Beyaz Esya | Nuh Cimento vs. Oyak Cimento Fabrikalari | Nuh Cimento vs. Turk Traktor ve |
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 CEOs Directory module to screen CEOs from public companies around the world.
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