Correlation Between Turkiye Sise and Park Elektrik

Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Park Elektrik 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 Turkiye Sise and Park Elektrik into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Turkiye Sise ve and Park Elektrik Uretim, you can compare the effects of market volatilities on Turkiye Sise and Park Elektrik 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 Turkiye Sise with a short position of Park Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Park Elektrik.

Diversification Opportunities for Turkiye Sise and Park Elektrik

0.63

Correlation Coefficient

Turkiye Sise  Park Elektrik

Poor diversification

The 3 months correlation between Turkiye and Park is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Park Elektrik Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park Elektrik Uretim and Turkiye Sise 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 Turkiye Sise ve are associated (or correlated) with Park Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park Elektrik Uretim has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Park Elektrik go up and down completely randomly.

Pair Corralation between Turkiye Sise and Park Elektrik

Assuming the 90 days trading horizon Turkiye Sise ve is expected to under-perform the Park Elektrik. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Sise ve is 1.75 times less risky than Park Elektrik. The stock trades about -0.19 of its potential returns per unit of risk. The Park Elektrik Uretim is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  2,412  in Park Elektrik Uretim on March 12, 2024 and sell it today you would lose (96.00) from holding Park Elektrik Uretim or give up 3.98% of portfolio value over 90 days.

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

Turkiye Sise ve  vs.  Park Elektrik Uretim

Turkiye Sise ve

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sise ve are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Turkiye Sise is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Park Elektrik Uretim

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Park Elektrik Uretim are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong technical and fundamental indicators, Park Elektrik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Turkiye Sise and Park Elektrik

The main advantage of trading using opposite Turkiye Sise and Park Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise position performs unexpectedly, Park Elektrik 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 Park Elektrik will offset losses from the drop in Park Elektrik's long position.

The idea behind Turkiye Sise ve and Park Elektrik Uretim 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..