Correlation Between Celebi Hava and Cemtas Celik

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

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

Diversification Opportunities for Celebi Hava and Cemtas Celik

-0.6

Correlation Coefficient

Celebi Hava  Cemtas Celik

Excellent diversification

The 3 months correlation between Celebi and Cemtas is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Celebi Hava Servisi and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina and Celebi Hava 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 Celebi Hava Servisi are associated (or correlated) with Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Celebi Hava i.e., Celebi Hava and Cemtas Celik go up and down completely randomly.

Pair Corralation between Celebi Hava and Cemtas Celik

Assuming the 90 days trading horizon Celebi Hava is expected to generate 1.42 times less return on investment than Cemtas Celik. In addition to that, Celebi Hava is 1.66 times more volatile than Cemtas Celik Makina. It trades about 0.13 of its total potential returns per unit of risk. Cemtas Celik Makina is currently generating about 0.32 per unit of volatility. If you would invest  968.00  in Cemtas Celik Makina on February 7, 2024 and sell it today you would earn a total of  132.00  from holding Cemtas Celik Makina or generate 13.64% return on investment over 90 days.

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

Celebi Hava Servisi  vs.  Cemtas Celik Makina

Celebi Hava Servisi

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Celebi Hava Servisi are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Celebi Hava demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Cemtas Celik Makina

Risk-Adjusted Performance

0 of 100

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 fairly strong basic indicators, Cemtas Celik is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Celebi Hava and Cemtas Celik

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

The idea behind Celebi Hava Servisi and Cemtas Celik Makina 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.