Correlation Between Desa Deri and Koc Holding
Can any of the company-specific risk be diversified away by investing in both Desa Deri and Koc Holding 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 Desa Deri and Koc Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Desa Deri Sanayi and Koc Holding AS, you can compare the effects of market volatilities on Desa Deri and Koc Holding 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 Desa Deri with a short position of Koc Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Desa Deri and Koc Holding.
Diversification Opportunities for Desa Deri and Koc Holding
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Desa and Koc is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Desa Deri Sanayi and Koc Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holding AS and Desa Deri 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 Desa Deri Sanayi are associated (or correlated) with Koc Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holding AS has no effect on the direction of Desa Deri i.e., Desa Deri and Koc Holding go up and down completely randomly.
Pair Corralation between Desa Deri and Koc Holding
Assuming the 90 days trading horizon Desa Deri Sanayi is expected to under-perform the Koc Holding. In addition to that, Desa Deri is 1.33 times more volatile than Koc Holding AS. It trades about -0.11 of its total potential returns per unit of risk. Koc Holding AS is currently generating about -0.02 per unit of volatility. If you would invest 21,300 in Koc Holding AS on September 5, 2024 and sell it today you would lose (1,830) from holding Koc Holding AS or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Desa Deri Sanayi vs. Koc Holding AS
Performance |
| Timeline |
| Desa Deri Sanayi |
| Koc Holding AS |
Desa Deri and Koc Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Desa Deri and Koc Holding
The main advantage of trading using opposite Desa Deri and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Desa Deri position performs unexpectedly, Koc Holding 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 Koc Holding will offset losses from the drop in Koc Holding's long position.| Desa Deri vs. Koc Holding AS | Desa Deri vs. Eregli Demir ve | Desa Deri vs. Turkiye Sise ve | Desa Deri vs. Turkcell Iletisim Hizmetleri |
| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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