Correlation Between Hitit Bilgisayar and Koc Holding
Can any of the company-specific risk be diversified away by investing in both Hitit Bilgisayar 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 Hitit Bilgisayar and Koc Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hitit Bilgisayar Hizmetleri and Koc Holding AS, you can compare the effects of market volatilities on Hitit Bilgisayar 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 Hitit Bilgisayar with a short position of Koc Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hitit Bilgisayar and Koc Holding.
Diversification Opportunities for Hitit Bilgisayar and Koc Holding
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hitit and Koc is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Hitit Bilgisayar Hizmetleri 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 Hitit Bilgisayar 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 Hitit Bilgisayar Hizmetleri 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 Hitit Bilgisayar i.e., Hitit Bilgisayar and Koc Holding go up and down completely randomly.
Pair Corralation between Hitit Bilgisayar and Koc Holding
Assuming the 90 days trading horizon Hitit Bilgisayar Hizmetleri is expected to generate 1.32 times more return on investment than Koc Holding. However, Hitit Bilgisayar is 1.32 times more volatile than Koc Holding AS. It trades about 0.09 of its potential returns per unit of risk. Koc Holding AS is currently generating about 0.1 per unit of risk. If you would invest 1,530 in Hitit Bilgisayar Hizmetleri on August 31, 2024 and sell it today you would earn a total of 2,106 from holding Hitit Bilgisayar Hizmetleri or generate 137.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hitit Bilgisayar Hizmetleri vs. Koc Holding AS
Performance |
| Timeline |
| Hitit Bilgisayar Hiz |
| Koc Holding AS |
Hitit Bilgisayar and Koc Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hitit Bilgisayar and Koc Holding
The main advantage of trading using opposite Hitit Bilgisayar and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hitit Bilgisayar 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.| Hitit Bilgisayar vs. Kafein Yazilim | Hitit Bilgisayar vs. Brisa Bridgestone Sabanci | Hitit Bilgisayar vs. Dogus Gayrimenkul Yatirim | Hitit Bilgisayar vs. IZDEMIR Enerji Elektrik |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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