Correlation Between Kardemir Karabuk and Ayes Celik
Can any of the company-specific risk be diversified away by investing in both Kardemir Karabuk and Ayes 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 Kardemir Karabuk and Ayes Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kardemir Karabuk Demir and Ayes Celik Hasir, you can compare the effects of market volatilities on Kardemir Karabuk and Ayes 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 Kardemir Karabuk with a short position of Ayes Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kardemir Karabuk and Ayes Celik.
Diversification Opportunities for Kardemir Karabuk and Ayes Celik
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kardemir and Ayes is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Kardemir Karabuk Demir and Ayes Celik Hasir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ayes Celik Hasir and Kardemir Karabuk 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 Kardemir Karabuk Demir are associated (or correlated) with Ayes Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ayes Celik Hasir has no effect on the direction of Kardemir Karabuk i.e., Kardemir Karabuk and Ayes Celik go up and down completely randomly.
Pair Corralation between Kardemir Karabuk and Ayes Celik
Assuming the 90 days trading horizon Kardemir Karabuk Demir is expected to generate 1.29 times more return on investment than Ayes Celik. However, Kardemir Karabuk is 1.29 times more volatile than Ayes Celik Hasir. It trades about 0.16 of its potential returns per unit of risk. Ayes Celik Hasir is currently generating about -0.23 per unit of risk. If you would invest 2,548 in Kardemir Karabuk Demir on September 2, 2024 and sell it today you would earn a total of 196.00 from holding Kardemir Karabuk Demir or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kardemir Karabuk Demir vs. Ayes Celik Hasir
Performance |
| Timeline |
| Kardemir Karabuk Demir |
| Ayes Celik Hasir |
Kardemir Karabuk and Ayes Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kardemir Karabuk and Ayes Celik
The main advantage of trading using opposite Kardemir Karabuk and Ayes Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kardemir Karabuk position performs unexpectedly, Ayes 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 Ayes Celik will offset losses from the drop in Ayes Celik's long position.| Kardemir Karabuk vs. Silverline Endustri ve | Kardemir Karabuk vs. Politeknik Metal Sanayi | Kardemir Karabuk vs. Turkiye Kalkinma Bankasi | Kardemir Karabuk vs. Trabzonspor Sportif Yatirim |
| Ayes Celik vs. Eregli Demir ve | Ayes Celik vs. Iskenderun Demir ve | Ayes Celik vs. Borusan Yatirim ve | Ayes Celik vs. Kardemir Karabuk Demir |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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