Correlation Between Flap Kongre and Cimsa Cimento

Can any of the company-specific risk be diversified away by investing in both Flap Kongre and Cimsa Cimento 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 Flap Kongre and Cimsa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Flap Kongre Toplanti and Cimsa Cimento Sanayi, you can compare the effects of market volatilities on Flap Kongre and Cimsa Cimento 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 Flap Kongre with a short position of Cimsa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Flap Kongre and Cimsa Cimento.

Diversification Opportunities for Flap Kongre and Cimsa Cimento

0.63

Correlation Coefficient

Flap Kongre  Cimsa Cimento

Poor diversification

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

Pair Corralation between Flap Kongre and Cimsa Cimento

Assuming the 90 days trading horizon Flap Kongre Toplanti is expected to generate 2.15 times more return on investment than Cimsa Cimento. However, Flap Kongre is 2.15 times more volatile than Cimsa Cimento Sanayi. It trades about 0.16 of its potential returns per unit of risk. Cimsa Cimento Sanayi is currently generating about 0.33 per unit of risk. If you would invest  837.00  in Flap Kongre Toplanti on February 3, 2024 and sell it today you would earn a total of  99.00  from holding Flap Kongre Toplanti or generate 11.83% return on investment over 90 days.

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

Flap Kongre Toplanti  vs.  Cimsa Cimento Sanayi

Flap Kongre Toplanti

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Flap Kongre Toplanti has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of inconsistent performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in June 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Cimsa Cimento Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Flap Kongre and Cimsa Cimento

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

The idea behind Flap Kongre Toplanti and Cimsa Cimento Sanayi 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.