Correlation Between Cemtas Celik and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Cemtas Celik 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 Cemtas Celik and Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cemtas Celik Makina and Koza Anadolu Metal, you can compare the effects of market volatilities on Cemtas Celik 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 Cemtas Celik with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cemtas Celik and Koza Anadolu.
Diversification Opportunities for Cemtas Celik and Koza Anadolu
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cemtas and Koza is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cemtas Celik Makina 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 Cemtas 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 Cemtas Celik Makina 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 Cemtas Celik i.e., Cemtas Celik and Koza Anadolu go up and down completely randomly.
Pair Corralation between Cemtas Celik and Koza Anadolu
Assuming the 90 days trading horizon Cemtas Celik is expected to generate 1.81 times less return on investment than Koza Anadolu. But when comparing it to its historical volatility, Cemtas Celik Makina is 2.43 times less risky than Koza Anadolu. It trades about 0.29 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 6,150 in Koza Anadolu Metal on September 1, 2024 and sell it today you would earn a total of 895.00 from holding Koza Anadolu Metal or generate 14.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Cemtas Celik Makina vs. Koza Anadolu Metal
Performance |
| Timeline |
| Cemtas Celik Makina |
| Koza Anadolu Metal |
Cemtas Celik and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cemtas Celik and Koza Anadolu
The main advantage of trading using opposite Cemtas Celik and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cemtas Celik 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.| Cemtas Celik vs. Gentas Genel Metal | Cemtas Celik vs. MEGA METAL | Cemtas Celik vs. Politeknik Metal Sanayi | Cemtas Celik vs. ICBC Turkey Bank |
| Koza Anadolu vs. Koza Altin Isletmeleri | Koza Anadolu vs. Ipek Dogal Enerji | Koza Anadolu vs. Petkim Petrokimya Holding | Koza Anadolu vs. Kardemir Karabuk Demir |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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