Correlation Between Afyon Cimento and Konya Cimento
Can any of the company-specific risk be diversified away by investing in both Afyon Cimento and Konya 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 Afyon Cimento and Konya Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Afyon Cimento Sanayi and Konya Cimento Sanayi, you can compare the effects of market volatilities on Afyon Cimento and Konya 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 Afyon Cimento with a short position of Konya Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Afyon Cimento and Konya Cimento.
Diversification Opportunities for Afyon Cimento and Konya Cimento
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Afyon and Konya is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Afyon Cimento Sanayi and Konya Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konya Cimento Sanayi and Afyon Cimento 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 Afyon Cimento Sanayi are associated (or correlated) with Konya Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konya Cimento Sanayi has no effect on the direction of Afyon Cimento i.e., Afyon Cimento and Konya Cimento go up and down completely randomly.
Pair Corralation between Afyon Cimento and Konya Cimento
Assuming the 90 days trading horizon Afyon Cimento is expected to generate 1.35 times less return on investment than Konya Cimento. But when comparing it to its historical volatility, Afyon Cimento Sanayi is 1.16 times less risky than Konya Cimento. It trades about 0.06 of its potential returns per unit of risk. Konya Cimento Sanayi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 355,000 in Konya Cimento Sanayi on August 28, 2024 and sell it today you would earn a total of 345,750 from holding Konya Cimento Sanayi or generate 97.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.72% |
| Values | Daily Returns |
Afyon Cimento Sanayi vs. Konya Cimento Sanayi
Performance |
| Timeline |
| Afyon Cimento Sanayi |
| Konya Cimento Sanayi |
Afyon Cimento and Konya Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Afyon Cimento and Konya Cimento
The main advantage of trading using opposite Afyon Cimento and Konya Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Afyon Cimento position performs unexpectedly, Konya 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 Konya Cimento will offset losses from the drop in Konya Cimento's long position.| Afyon Cimento vs. Bms Birlesik Metal | Afyon Cimento vs. Sodas Sodyum Sanayi | Afyon Cimento vs. Qnb Finansbank AS | Afyon Cimento vs. Silverline Endustri ve |
| Konya Cimento vs. Qnb Finansbank AS | Konya Cimento vs. QNB Finans Finansal | Konya Cimento vs. Turkiye Kalkinma Bankasi | Konya Cimento 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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