Correlation Between Kocaer Celik and Koza Altin
Can any of the company-specific risk be diversified away by investing in both Kocaer Celik and Koza Altin 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 Kocaer Celik and Koza Altin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kocaer Celik Sanayi and Koza Altin Isletmeleri, you can compare the effects of market volatilities on Kocaer Celik and Koza Altin 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 Kocaer Celik with a short position of Koza Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kocaer Celik and Koza Altin.
Diversification Opportunities for Kocaer Celik and Koza Altin
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kocaer and Koza is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik Sanayi and Koza Altin Isletmeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Altin Isletmeleri and Kocaer Celik 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 Kocaer Celik Sanayi are associated (or correlated) with Koza Altin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Altin Isletmeleri has no effect on the direction of Kocaer Celik i.e., Kocaer Celik and Koza Altin go up and down completely randomly.
Pair Corralation between Kocaer Celik and Koza Altin
Assuming the 90 days trading horizon Kocaer Celik is expected to generate 3.93 times less return on investment than Koza Altin. But when comparing it to its historical volatility, Kocaer Celik Sanayi is 4.25 times less risky than Koza Altin. It trades about 0.05 of its potential returns per unit of risk. Koza Altin Isletmeleri is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,298 in Koza Altin Isletmeleri on September 5, 2024 and sell it today you would earn a total of 62.00 from holding Koza Altin Isletmeleri or generate 2.7% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 99.19% |
Values | Daily Returns |
Kocaer Celik Sanayi vs. Koza Altin Isletmeleri
Performance |
Timeline |
Kocaer Celik Sanayi |
Koza Altin Isletmeleri |
Kocaer Celik and Koza Altin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Kocaer Celik and Koza Altin
The main advantage of trading using opposite Kocaer Celik and Koza Altin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kocaer Celik position performs unexpectedly, Koza Altin 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 Koza Altin will offset losses from the drop in Koza Altin's long position.Kocaer Celik vs. Eregli Demir ve | Kocaer Celik vs. Iskenderun Demir ve | Kocaer Celik vs. Borusan Yatirim ve | Kocaer Celik vs. Kardemir Karabuk Demir |
Koza Altin vs. Qnb Finansbank AS | Koza Altin vs. Turkiye Kalkinma Bankasi | Koza Altin vs. Kocaer Celik Sanayi |
Check out your portfolio center.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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