Correlation Between Deva Holding and Kartonsan Karton
Can any of the company-specific risk be diversified away by investing in both Deva Holding and Kartonsan Karton 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 Deva Holding and Kartonsan Karton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Deva Holding AS and Kartonsan Karton Sanayi, you can compare the effects of market volatilities on Deva Holding and Kartonsan Karton 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 Deva Holding with a short position of Kartonsan Karton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Deva Holding and Kartonsan Karton.
Diversification Opportunities for Deva Holding and Kartonsan Karton
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Deva and Kartonsan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Deva Holding AS and Kartonsan Karton Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kartonsan Karton Sanayi and Deva Holding 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 Deva Holding AS are associated (or correlated) with Kartonsan Karton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kartonsan Karton Sanayi has no effect on the direction of Deva Holding i.e., Deva Holding and Kartonsan Karton go up and down completely randomly.
Pair Corralation between Deva Holding and Kartonsan Karton
Assuming the 90 days trading horizon Deva Holding AS is expected to generate 0.82 times more return on investment than Kartonsan Karton. However, Deva Holding AS is 1.22 times less risky than Kartonsan Karton. It trades about 0.01 of its potential returns per unit of risk. Kartonsan Karton Sanayi is currently generating about -0.03 per unit of risk. If you would invest 6,890 in Deva Holding AS on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Deva Holding AS or generate 0.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Deva Holding AS vs. Kartonsan Karton Sanayi
Performance |
| Timeline |
| Deva Holding AS |
| Kartonsan Karton Sanayi |
Deva Holding and Kartonsan Karton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Deva Holding and Kartonsan Karton
The main advantage of trading using opposite Deva Holding and Kartonsan Karton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Deva Holding position performs unexpectedly, Kartonsan Karton 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 Kartonsan Karton will offset losses from the drop in Kartonsan Karton's long position.| Deva Holding vs. Turkiye Is Bankasi | Deva Holding vs. Ege Endustri ve | Deva Holding vs. Turkiye Petrol Rafinerileri | Deva Holding vs. Ford Otomotiv Sanayi |
| Kartonsan Karton vs. Trend Gayrimenkul Yatirim | Kartonsan Karton vs. Trabzon Liman Isletmeciligi | Kartonsan Karton vs. Halk Gayrimenkul Yatirim | Kartonsan Karton vs. Inveo Yatirim Holding |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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