Correlation Between Trabzon Liman and Alkim Kagit
Can any of the company-specific risk be diversified away by investing in both Trabzon Liman and Alkim Kagit 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 Trabzon Liman and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trabzon Liman Isletmeciligi and Alkim Kagit Sanayi, you can compare the effects of market volatilities on Trabzon Liman and Alkim Kagit 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 Trabzon Liman with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trabzon Liman and Alkim Kagit.
Diversification Opportunities for Trabzon Liman and Alkim Kagit
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Trabzon and Alkim is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Trabzon Liman Isletmeciligi and Alkim Kagit Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Kagit Sanayi and Trabzon Liman 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 Trabzon Liman Isletmeciligi are associated (or correlated) with Alkim Kagit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Kagit Sanayi has no effect on the direction of Trabzon Liman i.e., Trabzon Liman and Alkim Kagit go up and down completely randomly.
Pair Corralation between Trabzon Liman and Alkim Kagit
Assuming the 90 days trading horizon Trabzon Liman Isletmeciligi is expected to generate 1.1 times more return on investment than Alkim Kagit. However, Trabzon Liman is 1.1 times more volatile than Alkim Kagit Sanayi. It trades about 0.02 of its potential returns per unit of risk. Alkim Kagit Sanayi is currently generating about 0.01 per unit of risk. If you would invest 9,545 in Trabzon Liman Isletmeciligi on August 31, 2024 and sell it today you would lose (30.00) from holding Trabzon Liman Isletmeciligi or give up 0.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trabzon Liman Isletmeciligi vs. Alkim Kagit Sanayi
Performance |
| Timeline |
| Trabzon Liman Isletm |
| Alkim Kagit Sanayi |
Trabzon Liman and Alkim Kagit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trabzon Liman and Alkim Kagit
The main advantage of trading using opposite Trabzon Liman and Alkim Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trabzon Liman position performs unexpectedly, Alkim Kagit 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 Alkim Kagit will offset losses from the drop in Alkim Kagit's long position.| Trabzon Liman vs. Bms Birlesik Metal | Trabzon Liman vs. Akbank TAS | Trabzon Liman vs. Cuhadaroglu Metal Sanayi | Trabzon Liman vs. Koza Anadolu Metal |
| Alkim Kagit vs. Trend Gayrimenkul Yatirim | Alkim Kagit vs. Trabzon Liman Isletmeciligi | Alkim Kagit vs. Halk Gayrimenkul Yatirim | Alkim Kagit vs. Inveo Yatirim Holding |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |