Correlation Between Oyak Cimento and Iskenderun Demir
Can any of the company-specific risk be diversified away by investing in both Oyak Cimento and Iskenderun Demir 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 Iskenderun Demir 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 Iskenderun Demir ve, you can compare the effects of market volatilities on Oyak Cimento and Iskenderun Demir 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 Iskenderun Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oyak Cimento and Iskenderun Demir.
Diversification Opportunities for Oyak Cimento and Iskenderun Demir
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Oyak and Iskenderun is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Oyak Cimento Fabrikalari and Iskenderun Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iskenderun Demir 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 Iskenderun Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iskenderun Demir has no effect on the direction of Oyak Cimento i.e., Oyak Cimento and Iskenderun Demir go up and down completely randomly.
Pair Corralation between Oyak Cimento and Iskenderun Demir
Assuming the 90 days trading horizon Oyak Cimento Fabrikalari is expected to generate 1.34 times more return on investment than Iskenderun Demir. However, Oyak Cimento is 1.34 times more volatile than Iskenderun Demir ve. It trades about 0.23 of its potential returns per unit of risk. Iskenderun Demir ve is currently generating about -0.25 per unit of risk. If you would invest 2,284 in Oyak Cimento Fabrikalari on November 8, 2024 and sell it today you would earn a total of 264.00 from holding Oyak Cimento Fabrikalari or generate 11.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oyak Cimento Fabrikalari vs. Iskenderun Demir ve
Performance |
| Timeline |
| Oyak Cimento Fabrikalari |
| Iskenderun Demir |
Oyak Cimento and Iskenderun Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oyak Cimento and Iskenderun Demir
The main advantage of trading using opposite Oyak Cimento and Iskenderun Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oyak Cimento position performs unexpectedly, Iskenderun Demir 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 Iskenderun Demir will offset losses from the drop in Iskenderun Demir's long position.| Oyak Cimento vs. MEGA METAL | Oyak Cimento vs. E Data Teknoloji Pazarlama | Oyak Cimento vs. Politeknik Metal Sanayi | Oyak Cimento vs. KOC METALURJI |
| Iskenderun Demir vs. Gentas Genel Metal | Iskenderun Demir vs. Ege Seramik Sanayi | Iskenderun Demir vs. Ege Gubre Sanayi | Iskenderun Demir vs. Brisa Bridgestone Sabanci |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |