Correlation Between Kuyas Yatirim and Sekerbank TAS
Can any of the company-specific risk be diversified away by investing in both Kuyas Yatirim and Sekerbank TAS 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 Kuyas Yatirim and Sekerbank TAS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kuyas Yatirim AS and Sekerbank TAS, you can compare the effects of market volatilities on Kuyas Yatirim and Sekerbank TAS 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 Kuyas Yatirim with a short position of Sekerbank TAS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kuyas Yatirim and Sekerbank TAS.
Diversification Opportunities for Kuyas Yatirim and Sekerbank TAS
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kuyas and Sekerbank is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kuyas Yatirim AS and Sekerbank TAS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sekerbank TAS and Kuyas 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 Kuyas Yatirim AS are associated (or correlated) with Sekerbank TAS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sekerbank TAS has no effect on the direction of Kuyas Yatirim i.e., Kuyas Yatirim and Sekerbank TAS go up and down completely randomly.
Pair Corralation between Kuyas Yatirim and Sekerbank TAS
Assuming the 90 days trading horizon Kuyas Yatirim is expected to generate 1.45 times less return on investment than Sekerbank TAS. But when comparing it to its historical volatility, Kuyas Yatirim AS is 1.33 times less risky than Sekerbank TAS. It trades about 0.35 of its potential returns per unit of risk. Sekerbank TAS is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 410.00 in Sekerbank TAS on January 30, 2024 and sell it today you would earn a total of 78.00 from holding Sekerbank TAS or generate 19.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Kuyas Yatirim AS vs. Sekerbank TAS
Performance |
Timeline |
Kuyas Yatirim AS |
Sekerbank TAS |
Kuyas Yatirim and Sekerbank TAS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kuyas Yatirim and Sekerbank TAS
The main advantage of trading using opposite Kuyas Yatirim and Sekerbank TAS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kuyas Yatirim position performs unexpectedly, Sekerbank TAS 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 Sekerbank TAS will offset losses from the drop in Sekerbank TAS's long position.Kuyas Yatirim vs. Turkiye Petrol Rafinerileri | Kuyas Yatirim vs. Koc Holding AS | Kuyas Yatirim vs. Turkiye Sise ve | Kuyas Yatirim vs. Eregli Demir ve |
Sekerbank TAS vs. Zorlu Enerji Elektrik | Sekerbank TAS vs. Soktas Tekstil Sanayi | Sekerbank TAS vs. Ayen Enerji 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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