Correlation Between Alarko Carrier and Iskenderun Demir
Can any of the company-specific risk be diversified away by investing in both Alarko Carrier and Iskenderun Demir 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 Alarko Carrier and Iskenderun Demir into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alarko Carrier Sanayi and Iskenderun Demir ve, you can compare the effects of market volatilities on Alarko Carrier and Iskenderun Demir 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 Alarko Carrier with a short position of Iskenderun Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarko Carrier and Iskenderun Demir.
Diversification Opportunities for Alarko Carrier and Iskenderun Demir
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Alarko and Iskenderun is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Alarko Carrier Sanayi and Iskenderun Demir ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iskenderun Demir and Alarko Carrier 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 Alarko Carrier Sanayi are associated (or correlated) with Iskenderun Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iskenderun Demir has no effect on the direction of Alarko Carrier i.e., Alarko Carrier and Iskenderun Demir go up and down completely randomly.
Pair Corralation between Alarko Carrier and Iskenderun Demir
Assuming the 90 days trading horizon Alarko Carrier Sanayi is expected to generate 1.73 times more return on investment than Iskenderun Demir. However, Alarko Carrier is 1.73 times more volatile than Iskenderun Demir ve. It trades about 0.06 of its potential returns per unit of risk. Iskenderun Demir ve is currently generating about 0.01 per unit of risk. If you would invest 62,300 in Alarko Carrier Sanayi on September 12, 2024 and sell it today you would earn a total of 38,700 from holding Alarko Carrier Sanayi or generate 62.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alarko Carrier Sanayi vs. Iskenderun Demir ve
Performance |
| Timeline |
| Alarko Carrier Sanayi |
| Iskenderun Demir |
Alarko Carrier and Iskenderun Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alarko Carrier and Iskenderun Demir
The main advantage of trading using opposite Alarko Carrier and Iskenderun Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarko Carrier position performs unexpectedly, Iskenderun Demir 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 Iskenderun Demir will offset losses from the drop in Iskenderun Demir's long position.| Alarko Carrier vs. Koza Anadolu Metal | Alarko Carrier vs. MEGA METAL | Alarko Carrier vs. Trabzonspor Sportif Yatirim | Alarko Carrier vs. Cuhadaroglu Metal Sanayi |
| Iskenderun Demir vs. Ayes Celik Hasir | Iskenderun Demir vs. Trend Gayrimenkul Yatirim | Iskenderun Demir vs. Ege Endustri ve | Iskenderun Demir vs. Alarko Carrier 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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