Correlation Between Cimentas Izmir and Koza Altin
Can any of the company-specific risk be diversified away by investing in both Cimentas Izmir 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 Cimentas Izmir and Koza Altin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cimentas Izmir Cimento and Koza Altin Isletmeleri, you can compare the effects of market volatilities on Cimentas Izmir 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 Cimentas Izmir with a short position of Koza Altin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cimentas Izmir and Koza Altin.
Diversification Opportunities for Cimentas Izmir and Koza Altin
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cimentas and Koza is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Cimentas Izmir Cimento 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 Cimentas Izmir 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 Cimentas Izmir Cimento 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 Cimentas Izmir i.e., Cimentas Izmir and Koza Altin go up and down completely randomly.
Pair Corralation between Cimentas Izmir and Koza Altin
Assuming the 90 days trading horizon Cimentas Izmir is expected to generate 1.27 times less return on investment than Koza Altin. But when comparing it to its historical volatility, Cimentas Izmir Cimento is 1.26 times less risky than Koza Altin. It trades about 0.29 of its potential returns per unit of risk. Koza Altin Isletmeleri is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,931 in Koza Altin Isletmeleri on September 3, 2024 and sell it today you would earn a total of 341.00 from holding Koza Altin Isletmeleri or generate 17.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cimentas Izmir Cimento vs. Koza Altin Isletmeleri
Performance |
| Timeline |
| Cimentas Izmir Cimento |
| Koza Altin Isletmeleri |
Cimentas Izmir and Koza Altin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cimentas Izmir and Koza Altin
The main advantage of trading using opposite Cimentas Izmir and Koza Altin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cimentas Izmir 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.| Cimentas Izmir vs. Gentas Genel Metal | Cimentas Izmir vs. MEGA METAL | Cimentas Izmir vs. Koza Anadolu Metal | Cimentas Izmir vs. Creditwest Faktoring AS |
| Koza Altin vs. Qnb Finansbank AS | Koza Altin vs. Turkiye Kalkinma Bankasi | Koza Altin vs. Kocaer Celik Sanayi | Koza Altin vs. Cimentas Izmir Cimento |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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