Correlation Between Celik Halat and Polisan Holding

Can any of the company-specific risk be diversified away by investing in both Celik Halat and Polisan Holding 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 Celik Halat and Polisan Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Celik Halat ve and Polisan Holding AS, you can compare the effects of market volatilities on Celik Halat and Polisan Holding 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 Celik Halat with a short position of Polisan Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Celik Halat and Polisan Holding.

Diversification Opportunities for Celik Halat and Polisan Holding

0.0

Correlation Coefficient

Celik Halat  Polisan Holding

Pay attention - limited upside

The 3 months correlation between Celik and Polisan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Celik Halat ve and Polisan Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Polisan Holding AS and Celik Halat 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 Celik Halat ve are associated (or correlated) with Polisan Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Polisan Holding AS has no effect on the direction of Celik Halat i.e., Celik Halat and Polisan Holding go up and down completely randomly.

Pair Corralation between Celik Halat and Polisan Holding

If you would invest  0.00  in Polisan Holding AS on February 2, 2024 and sell it today you would earn a total of  0.00  from holding Polisan Holding AS or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	2.56%
Values	Daily Returns

Celik Halat ve  vs.  Polisan Holding AS

Celik Halat ve

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Celik Halat ve are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, Celik Halat demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Polisan Holding AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Polisan Holding AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Polisan Holding is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Celik Halat and Polisan Holding

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

The idea behind Celik Halat ve and Polisan Holding AS 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.

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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.