Correlation Between Nuh Cimento and Cimsa Cimento
Can any of the company-specific risk be diversified away by investing in both Nuh Cimento and Cimsa 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 Nuh Cimento and Cimsa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nuh Cimento Sanayi and Cimsa Cimento Sanayi, you can compare the effects of market volatilities on Nuh Cimento and Cimsa 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 Nuh Cimento with a short position of Cimsa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuh Cimento and Cimsa Cimento.
Diversification Opportunities for Nuh Cimento and Cimsa Cimento
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Nuh and Cimsa is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Nuh Cimento Sanayi and Cimsa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimsa Cimento Sanayi and Nuh Cimento 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 Nuh Cimento Sanayi are associated (or correlated) with Cimsa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimsa Cimento Sanayi has no effect on the direction of Nuh Cimento i.e., Nuh Cimento and Cimsa Cimento go up and down completely randomly.
Pair Corralation between Nuh Cimento and Cimsa Cimento
Assuming the 90 days trading horizon Nuh Cimento Sanayi is expected to generate 0.8 times more return on investment than Cimsa Cimento. However, Nuh Cimento Sanayi is 1.25 times less risky than Cimsa Cimento. It trades about -0.23 of its potential returns per unit of risk. Cimsa Cimento Sanayi is currently generating about -0.29 per unit of risk. If you would invest 27,975 in Nuh Cimento Sanayi on December 1, 2024 and sell it today you would lose (2,700) from holding Nuh Cimento Sanayi or give up 9.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nuh Cimento Sanayi vs. Cimsa Cimento Sanayi
Performance |
| Timeline |
| Nuh Cimento Sanayi |
| Cimsa Cimento Sanayi |
Nuh Cimento and Cimsa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuh Cimento and Cimsa Cimento
The main advantage of trading using opposite Nuh Cimento and Cimsa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuh Cimento position performs unexpectedly, Cimsa 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 Cimsa Cimento will offset losses from the drop in Cimsa Cimento's long position.| Nuh Cimento vs. Iskenderun Demir ve | Nuh Cimento vs. Vestel Beyaz Esya | Nuh Cimento vs. Oyak Cimento Fabrikalari | Nuh Cimento vs. Turk Traktor ve |
| Cimsa Cimento vs. Aksa Akrilik Kimya | Cimsa Cimento vs. Tofas Turk Otomobil | Cimsa Cimento vs. Turk Traktor ve | Cimsa Cimento vs. Kordsa Global Endustriyel |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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