Correlation Between Kardemir Karabuk and Yukselen Celik
Can any of the company-specific risk be diversified away by investing in both Kardemir Karabuk and Yukselen 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 Yukselen 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 Yukselen Celik As, you can compare the effects of market volatilities on Kardemir Karabuk and Yukselen 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 Yukselen Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kardemir Karabuk and Yukselen Celik.
Diversification Opportunities for Kardemir Karabuk and Yukselen Celik
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kardemir and Yukselen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Kardemir Karabuk Demir and Yukselen Celik As in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yukselen Celik As 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 Yukselen Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yukselen Celik As has no effect on the direction of Kardemir Karabuk i.e., Kardemir Karabuk and Yukselen Celik go up and down completely randomly.
Pair Corralation between Kardemir Karabuk and Yukselen Celik
Assuming the 90 days trading horizon Kardemir Karabuk Demir is expected to generate 0.92 times more return on investment than Yukselen Celik. However, Kardemir Karabuk Demir is 1.09 times less risky than Yukselen Celik. It trades about 0.19 of its potential returns per unit of risk. Yukselen Celik As is currently generating about 0.0 per unit of risk. If you would invest 2,402 in Kardemir Karabuk Demir on August 24, 2024 and sell it today you would earn a total of 230.00 from holding Kardemir Karabuk Demir or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kardemir Karabuk Demir vs. Yukselen Celik As
Performance |
| Timeline |
| Kardemir Karabuk Demir |
| Yukselen Celik As |
Kardemir Karabuk and Yukselen Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kardemir Karabuk and Yukselen Celik
The main advantage of trading using opposite Kardemir Karabuk and Yukselen Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kardemir Karabuk position performs unexpectedly, Yukselen 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 Yukselen Celik will offset losses from the drop in Yukselen Celik's long position.| Kardemir Karabuk vs. ICBC Turkey Bank | Kardemir Karabuk vs. Politeknik Metal Sanayi | Kardemir Karabuk vs. MEGA METAL | Kardemir Karabuk vs. Sekerbank TAS |
| Yukselen Celik vs. MEGA METAL | Yukselen Celik vs. Bms Birlesik Metal | Yukselen Celik vs. Gentas Genel Metal | Yukselen Celik vs. Turkiye Kalkinma Bankasi |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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