Correlation Between DO AG and Korfez Gayrimenkul

Can any of the company-specific risk be diversified away by investing in both DO AG and Korfez Gayrimenkul 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 DO AG and Korfez Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between DO AG and Korfez Gayrimenkul Yatirim, you can compare the effects of market volatilities on DO AG and Korfez Gayrimenkul 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 DO AG with a short position of Korfez Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO AG and Korfez Gayrimenkul.

Diversification Opportunities for DO AG and Korfez Gayrimenkul

-0.63

Correlation Coefficient

DO AG  Korfez Gayrimenkul

Excellent diversification

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

Pair Corralation between DO AG and Korfez Gayrimenkul

Assuming the 90 days trading horizon DO AG is expected to generate 0.56 times more return on investment than Korfez Gayrimenkul. However, DO AG is 1.8 times less risky than Korfez Gayrimenkul. It trades about 0.17 of its potential returns per unit of risk. Korfez Gayrimenkul Yatirim is currently generating about -0.03 per unit of risk. If you would invest  493,000  in DO AG on February 13, 2024 and sell it today you would earn a total of  21,250  from holding DO AG or generate 4.31% return on investment over 90 days.

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

DO AG  vs.  Korfez Gayrimenkul Yatirim

DO AG

Risk-Adjusted Performance

11 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in DO AG are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively inconsistent basic indicators, DO AG unveiled solid returns over the last few months and may actually be approaching a breakup point.

Korfez Gayrimenkul

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Korfez Gayrimenkul Yatirim 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 basic indicators remain fairly strong which may send shares a bit higher in June 2024. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with DO AG and Korfez Gayrimenkul

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

The idea behind DO AG and Korfez Gayrimenkul Yatirim 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.