Correlation Between Ipek Dogal and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Ipek Dogal 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 Ipek Dogal and Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ipek Dogal Enerji and Koza Anadolu Metal, you can compare the effects of market volatilities on Ipek Dogal 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 Ipek Dogal with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ipek Dogal and Koza Anadolu.
Diversification Opportunities for Ipek Dogal and Koza Anadolu
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ipek and Koza is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Ipek Dogal Enerji 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 Ipek Dogal 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 Ipek Dogal Enerji 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 Ipek Dogal i.e., Ipek Dogal and Koza Anadolu go up and down completely randomly.
Pair Corralation between Ipek Dogal and Koza Anadolu
Assuming the 90 days trading horizon Ipek Dogal Enerji is expected to generate 1.14 times more return on investment than Koza Anadolu. However, Ipek Dogal is 1.14 times more volatile than Koza Anadolu Metal. It trades about 0.56 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.41 per unit of risk. If you would invest 3,474 in Ipek Dogal Enerji on August 25, 2024 and sell it today you would earn a total of 1,486 from holding Ipek Dogal Enerji or generate 42.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ipek Dogal Enerji vs. Koza Anadolu Metal
Performance |
| Timeline |
| Ipek Dogal Enerji |
| Koza Anadolu Metal |
Ipek Dogal and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ipek Dogal and Koza Anadolu
The main advantage of trading using opposite Ipek Dogal and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ipek Dogal 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.| Ipek Dogal vs. Koza Anadolu Metal | Ipek Dogal vs. Koza Altin Isletmeleri | Ipek Dogal vs. Vestel Elektronik Sanayi | Ipek Dogal vs. Petkim Petrokimya Holding |
| 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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