Correlation Between Inveo Yatirim and Alkim Kagit

Can any of the company-specific risk be diversified away by investing in both Inveo Yatirim 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 Inveo Yatirim and Alkim Kagit into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Inveo Yatirim Holding and Alkim Kagit Sanayi, you can compare the effects of market volatilities on Inveo Yatirim 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 Inveo Yatirim with a short position of Alkim Kagit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inveo Yatirim and Alkim Kagit.

Diversification Opportunities for Inveo Yatirim and Alkim Kagit

-0.08

Correlation Coefficient

Inveo Yatirim  Alkim Kagit

Good diversification

The 3 months correlation between Inveo and Alkim is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Inveo Yatirim Holding 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 Inveo Yatirim 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 Inveo Yatirim Holding 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 Inveo Yatirim i.e., Inveo Yatirim and Alkim Kagit go up and down completely randomly.

Pair Corralation between Inveo Yatirim and Alkim Kagit

Assuming the 90 days trading horizon Inveo Yatirim Holding is expected to under-perform the Alkim Kagit. But the stock apears to be less risky and, when comparing its historical volatility, Inveo Yatirim Holding is 1.82 times less risky than Alkim Kagit. The stock trades about -0.18 of its potential returns per unit of risk. The Alkim Kagit Sanayi is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  2,780  in Alkim Kagit Sanayi on March 22, 2024 and sell it today you would earn a total of  2.00  from holding Alkim Kagit Sanayi or generate 0.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Inveo Yatirim Holding  vs.  Alkim Kagit Sanayi

Inveo Yatirim Holding

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Inveo Yatirim Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent basic indicators, Inveo Yatirim may actually be approaching a critical reversion point that can send shares even higher in July 2024.

Alkim Kagit Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Alkim Kagit Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with Inveo Yatirim and Alkim Kagit

The main advantage of trading using opposite Inveo Yatirim and Alkim Kagit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inveo Yatirim 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.

The idea behind Inveo Yatirim Holding and Alkim Kagit Sanayi pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.