Correlation Between Alarko Carrier and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Alarko Carrier and Koza Anadolu 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 Koza Anadolu 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 Koza Anadolu Metal, you can compare the effects of market volatilities on Alarko Carrier and Koza Anadolu 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 Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alarko Carrier and Koza Anadolu.
Diversification Opportunities for Alarko Carrier and Koza Anadolu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alarko and Koza is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Alarko Carrier Sanayi and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal 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 Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of Alarko Carrier i.e., Alarko Carrier and Koza Anadolu go up and down completely randomly.
Pair Corralation between Alarko Carrier and Koza Anadolu
Assuming the 90 days trading horizon Alarko Carrier is expected to generate 2.97 times less return on investment than Koza Anadolu. But when comparing it to its historical volatility, Alarko Carrier Sanayi is 1.72 times less risky than Koza Anadolu. It trades about 0.08 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 6,490 in Koza Anadolu Metal on September 19, 2024 and sell it today you would earn a total of 530.00 from holding Koza Anadolu Metal or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alarko Carrier Sanayi vs. Koza Anadolu Metal
Performance |
| Timeline |
| Alarko Carrier Sanayi |
| Koza Anadolu Metal |
Alarko Carrier and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alarko Carrier and Koza Anadolu
The main advantage of trading using opposite Alarko Carrier and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alarko Carrier position performs unexpectedly, Koza Anadolu 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 Anadolu will offset losses from the drop in Koza Anadolu's long position.| Alarko Carrier vs. Ege Endustri ve | Alarko Carrier vs. Turkiye Petrol Rafinerileri | Alarko Carrier vs. Turkiye Garanti Bankasi | Alarko Carrier vs. Turkish Airlines |
| Koza Anadolu vs. Ayes Celik Hasir | Koza Anadolu vs. Trend Gayrimenkul Yatirim | Koza Anadolu vs. Ege Endustri ve | Koza Anadolu 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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