Correlation Between Cimentas Izmir and Barem Ambalaj

Can any of the company-specific risk be diversified away by investing in both Cimentas Izmir and Barem Ambalaj 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 Cimentas Izmir and Barem Ambalaj into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Cimentas Izmir and Barem Ambalaj

0.0

Correlation Coefficient

Cimentas Izmir  Barem Ambalaj

Pay attention - limited upside

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

Pair Corralation between Cimentas Izmir and Barem Ambalaj

If you would invest (100.00) in Barem Ambalaj Sanayi on March 5, 2024 and sell it today you would earn a total of  100.00  from holding Barem Ambalaj Sanayi or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Cimentas Izmir Cimento  vs.  Barem Ambalaj Sanayi

Cimentas Izmir Cimento

Risk-Adjusted Performance

0 of 100

Very Weak

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

Barem Ambalaj Sanayi

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Barem Ambalaj Sanayi has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the recent confusion on Wall Street may also be a sign of long-lasting gains for the firm traders.

Pair Trading with Cimentas Izmir and Barem Ambalaj

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

The idea behind Cimentas Izmir Cimento and Barem Ambalaj 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.