Correlation Between Nuh Cimento and Cimentas Izmir
Can any of the company-specific risk be diversified away by investing in both Nuh Cimento and Cimentas Izmir 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 Cimentas Izmir 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 Cimentas Izmir Cimento, you can compare the effects of market volatilities on Nuh Cimento and Cimentas Izmir 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 Cimentas Izmir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nuh Cimento and Cimentas Izmir.
Diversification Opportunities for Nuh Cimento and Cimentas Izmir
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nuh and Cimentas is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Nuh Cimento Sanayi and Cimentas Izmir Cimento in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cimentas Izmir Cimento 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 Cimentas Izmir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cimentas Izmir Cimento has no effect on the direction of Nuh Cimento i.e., Nuh Cimento and Cimentas Izmir go up and down completely randomly.
Pair Corralation between Nuh Cimento and Cimentas Izmir
Assuming the 90 days trading horizon Nuh Cimento Sanayi is expected to under-perform the Cimentas Izmir. But the stock apears to be less risky and, when comparing its historical volatility, Nuh Cimento Sanayi is 1.17 times less risky than Cimentas Izmir. The stock trades about -0.23 of its potential returns per unit of risk. The Cimentas Izmir Cimento is currently generating about -0.15 of returns per unit of risk over similar time horizon. If you would invest 40,300 in Cimentas Izmir Cimento on December 1, 2024 and sell it today you would lose (3,300) from holding Cimentas Izmir Cimento or give up 8.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Nuh Cimento Sanayi vs. Cimentas Izmir Cimento
Performance |
| Timeline |
| Nuh Cimento Sanayi |
| Cimentas Izmir Cimento |
Nuh Cimento and Cimentas Izmir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nuh Cimento and Cimentas Izmir
The main advantage of trading using opposite Nuh Cimento and Cimentas Izmir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nuh Cimento position performs unexpectedly, Cimentas Izmir 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 Cimentas Izmir will offset losses from the drop in Cimentas Izmir'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 |
| Cimentas Izmir vs. Qnb Finansbank AS | Cimentas Izmir vs. Akbank TAS | Cimentas Izmir vs. Bms Birlesik Metal | Cimentas Izmir vs. Koza Anadolu Metal |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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