Correlation Between Kocaer Celik and Nuh Cimento
Can any of the company-specific risk be diversified away by investing in both Kocaer Celik 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 Kocaer Celik and Nuh Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kocaer Celik Sanayi and Nuh Cimento Sanayi, you can compare the effects of market volatilities on Kocaer Celik 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 Kocaer Celik with a short position of Nuh Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kocaer Celik and Nuh Cimento.
Diversification Opportunities for Kocaer Celik and Nuh Cimento
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kocaer and Nuh is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik Sanayi 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 Kocaer Celik 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 Kocaer Celik Sanayi 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 Kocaer Celik i.e., Kocaer Celik and Nuh Cimento go up and down completely randomly.
Pair Corralation between Kocaer Celik and Nuh Cimento
Assuming the 90 days trading horizon Kocaer Celik Sanayi is expected to under-perform the Nuh Cimento. But the stock apears to be less risky and, when comparing its historical volatility, Kocaer Celik Sanayi is 1.02 times less risky than Nuh Cimento. The stock trades about -0.68 of its potential returns per unit of risk. The Nuh Cimento Sanayi is currently generating about -0.21 of returns per unit of risk over similar time horizon. If you would invest 29,350 in Nuh Cimento Sanayi on November 8, 2024 and sell it today you would lose (1,925) from holding Nuh Cimento Sanayi or give up 6.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kocaer Celik Sanayi vs. Nuh Cimento Sanayi
Performance |
| Timeline |
| Kocaer Celik Sanayi |
| Nuh Cimento Sanayi |
Kocaer Celik and Nuh Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kocaer Celik and Nuh Cimento
The main advantage of trading using opposite Kocaer Celik and Nuh Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kocaer Celik 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.| Kocaer Celik vs. Eregli Demir ve | Kocaer Celik vs. Iskenderun Demir ve | Kocaer Celik vs. Borusan Yatirim ve | Kocaer Celik vs. Kardemir Karabuk Demir |
| 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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