Correlation Between Cuhadaroglu Metal and Turkiye Sinai

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

By analyzing existing cross correlation between Cuhadaroglu Metal Sanayi and Turkiye Sinai Kalkinma, you can compare the effects of market volatilities on Cuhadaroglu Metal and Turkiye Sinai 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 Cuhadaroglu Metal with a short position of Turkiye Sinai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuhadaroglu Metal and Turkiye Sinai.

Diversification Opportunities for Cuhadaroglu Metal and Turkiye Sinai

-0.41

Correlation Coefficient

Cuhadaroglu Metal  Turkiye Sinai

Very good diversification

The 3 months correlation between Cuhadaroglu and Turkiye is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Cuhadaroglu Metal Sanayi and Turkiye Sinai Kalkinma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sinai Kalkinma and Cuhadaroglu Metal 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 Cuhadaroglu Metal Sanayi are associated (or correlated) with Turkiye Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sinai Kalkinma has no effect on the direction of Cuhadaroglu Metal i.e., Cuhadaroglu Metal and Turkiye Sinai go up and down completely randomly.

Pair Corralation between Cuhadaroglu Metal and Turkiye Sinai

Assuming the 90 days trading horizon Cuhadaroglu Metal Sanayi is expected to under-perform the Turkiye Sinai. But the stock apears to be less risky and, when comparing its historical volatility, Cuhadaroglu Metal Sanayi is 1.46 times less risky than Turkiye Sinai. The stock trades about -0.14 of its potential returns per unit of risk. The Turkiye Sinai Kalkinma is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  1,080  in Turkiye Sinai Kalkinma on April 24, 2025 and sell it today you would earn a total of  308.00  from holding Turkiye Sinai Kalkinma or generate 28.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.33%
Values	Daily Returns

Cuhadaroglu Metal Sanayi  vs.  Turkiye Sinai Kalkinma

Cuhadaroglu Metal Sanayi

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cuhadaroglu Metal Sanayi 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.

Turkiye Sinai Kalkinma

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Turkiye Sinai Kalkinma are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, Turkiye Sinai unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Cuhadaroglu Metal and Turkiye Sinai

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

The idea behind Cuhadaroglu Metal Sanayi and Turkiye Sinai Kalkinma 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 Global Correlations module to find global opportunities by holding instruments from different markets.