Correlation Between Sok Marketler and Makina Takim

Can any of the company-specific risk be diversified away by investing in both Sok Marketler and Makina Takim 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 Sok Marketler and Makina Takim into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Sok Marketler Ticaret and Makina Takim Endustrisi, you can compare the effects of market volatilities on Sok Marketler and Makina Takim 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 Sok Marketler with a short position of Makina Takim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sok Marketler and Makina Takim.

Diversification Opportunities for Sok Marketler and Makina Takim

0.3

Correlation Coefficient

Sok Marketler  Makina Takim

Weak diversification

The 3 months correlation between Sok and Makina is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Sok Marketler Ticaret and Makina Takim Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Makina Takim Endustrisi and Sok Marketler 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 Sok Marketler Ticaret are associated (or correlated) with Makina Takim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Makina Takim Endustrisi has no effect on the direction of Sok Marketler i.e., Sok Marketler and Makina Takim go up and down completely randomly.

Pair Corralation between Sok Marketler and Makina Takim

Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to under-perform the Makina Takim. But the stock apears to be less risky and, when comparing its historical volatility, Sok Marketler Ticaret is 1.49 times less risky than Makina Takim. The stock trades about -0.02 of its potential returns per unit of risk. The Makina Takim Endustrisi is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest  682.00  in Makina Takim Endustrisi on February 12, 2024 and sell it today you would lose (12.00) from holding Makina Takim Endustrisi or give up 1.76% of portfolio value over 90 days.

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

Sok Marketler Ticaret  vs.  Makina Takim Endustrisi

Sok Marketler Ticaret

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sok Marketler Ticaret has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Makina Takim Endustrisi

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Makina Takim Endustrisi are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong forward-looking signals, Makina Takim is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Sok Marketler and Makina Takim

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

The idea behind Sok Marketler Ticaret and Makina Takim Endustrisi 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.