Correlation Between Oyak Cimento and Cimentas Izmir
Can any of the company-specific risk be diversified away by investing in both Oyak 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 Oyak 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 Oyak Cimento Fabrikalari and Cimentas Izmir Cimento, you can compare the effects of market volatilities on Oyak 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 Oyak Cimento with a short position of Cimentas Izmir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oyak Cimento and Cimentas Izmir.
Diversification Opportunities for Oyak Cimento and Cimentas Izmir
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Oyak and Cimentas is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Oyak Cimento Fabrikalari 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 Oyak 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 Oyak Cimento Fabrikalari 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 Oyak Cimento i.e., Oyak Cimento and Cimentas Izmir go up and down completely randomly.
Pair Corralation between Oyak Cimento and Cimentas Izmir
Assuming the 90 days trading horizon Oyak Cimento is expected to generate 1.35 times less return on investment than Cimentas Izmir. But when comparing it to its historical volatility, Oyak Cimento Fabrikalari is 1.42 times less risky than Cimentas Izmir. It trades about 0.09 of its potential returns per unit of risk. Cimentas Izmir Cimento is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8,795 in Cimentas Izmir Cimento on September 3, 2024 and sell it today you would earn a total of 32,905 from holding Cimentas Izmir Cimento or generate 374.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oyak Cimento Fabrikalari vs. Cimentas Izmir Cimento
Performance |
| Timeline |
| Oyak Cimento Fabrikalari |
| Cimentas Izmir Cimento |
Oyak Cimento and Cimentas Izmir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oyak Cimento and Cimentas Izmir
The main advantage of trading using opposite Oyak Cimento and Cimentas Izmir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oyak 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.| Oyak Cimento vs. ICBC Turkey Bank | Oyak Cimento vs. Mackolik Internet Hizmetleri | Oyak Cimento vs. Politeknik Metal Sanayi | Oyak Cimento vs. E Data Teknoloji Pazarlama |
| Cimentas Izmir vs. Gentas Genel Metal | Cimentas Izmir vs. MEGA METAL | Cimentas Izmir vs. Koza Anadolu Metal | Cimentas Izmir vs. Creditwest Faktoring AS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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