Correlation Between Cemtas Celik and Tofas Turk

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

By analyzing existing cross correlation between Cemtas Celik Makina and Tofas Turk Otomobil, you can compare the effects of market volatilities on Cemtas Celik and Tofas Turk 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 Cemtas Celik with a short position of Tofas Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtas Celik and Tofas Turk.

Diversification Opportunities for Cemtas Celik and Tofas Turk

0.16

Correlation Coefficient

Cemtas Celik  Tofas Turk

Average diversification

The 3 months correlation between Cemtas and Tofas is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina and Tofas Turk Otomobil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tofas Turk Otomobil and Cemtas Celik 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 Cemtas Celik Makina are associated (or correlated) with Tofas Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tofas Turk Otomobil has no effect on the direction of Cemtas Celik i.e., Cemtas Celik and Tofas Turk go up and down completely randomly.

Pair Corralation between Cemtas Celik and Tofas Turk

Assuming the 90 days trading horizon Cemtas Celik Makina is expected to under-perform the Tofas Turk. In addition to that, Cemtas Celik is 1.12 times more volatile than Tofas Turk Otomobil. It trades about -0.27 of its total potential returns per unit of risk. Tofas Turk Otomobil is currently generating about 0.05 per unit of volatility. If you would invest  20,310  in Tofas Turk Otomobil on April 25, 2025 and sell it today you would earn a total of  1,030  from holding Tofas Turk Otomobil or generate 5.07% return on investment over 90 days.

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

Cemtas Celik Makina  vs.  Tofas Turk Otomobil

Cemtas Celik Makina

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cemtas Celik Makina has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Tofas Turk Otomobil

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Tofas Turk Otomobil are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Tofas Turk may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Cemtas Celik and Tofas Turk

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

The idea behind Cemtas Celik Makina and Tofas Turk Otomobil 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.