Correlation Between Karsan Otomotiv and Ditas Dogan
Can any of the company-specific risk be diversified away by investing in both Karsan Otomotiv and Ditas Dogan 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 Karsan Otomotiv and Ditas Dogan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Karsan Otomotiv Sanayi and Ditas Dogan Yedek, you can compare the effects of market volatilities on Karsan Otomotiv and Ditas Dogan 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 Karsan Otomotiv with a short position of Ditas Dogan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Karsan Otomotiv and Ditas Dogan.
Diversification Opportunities for Karsan Otomotiv and Ditas Dogan
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Karsan and Ditas is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Karsan Otomotiv Sanayi and Ditas Dogan Yedek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ditas Dogan Yedek and Karsan Otomotiv 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 Karsan Otomotiv Sanayi are associated (or correlated) with Ditas Dogan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ditas Dogan Yedek has no effect on the direction of Karsan Otomotiv i.e., Karsan Otomotiv and Ditas Dogan go up and down completely randomly.
Pair Corralation between Karsan Otomotiv and Ditas Dogan
Assuming the 90 days trading horizon Karsan Otomotiv Sanayi is expected to under-perform the Ditas Dogan. In addition to that, Karsan Otomotiv is 1.25 times more volatile than Ditas Dogan Yedek. It trades about -0.29 of its total potential returns per unit of risk. Ditas Dogan Yedek is currently generating about -0.12 per unit of volatility. If you would invest 1,597 in Ditas Dogan Yedek on August 30, 2024 and sell it today you would lose (88.00) from holding Ditas Dogan Yedek or give up 5.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Karsan Otomotiv Sanayi vs. Ditas Dogan Yedek
Performance |
| Timeline |
| Karsan Otomotiv Sanayi |
| Ditas Dogan Yedek |
Karsan Otomotiv and Ditas Dogan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Karsan Otomotiv and Ditas Dogan
The main advantage of trading using opposite Karsan Otomotiv and Ditas Dogan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Karsan Otomotiv position performs unexpectedly, Ditas Dogan 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 Ditas Dogan will offset losses from the drop in Ditas Dogan's long position.| Karsan Otomotiv vs. E Data Teknoloji Pazarlama | Karsan Otomotiv vs. Koza Anadolu Metal | Karsan Otomotiv vs. Akbank TAS | Karsan Otomotiv vs. ICBC Turkey Bank |
| Ditas Dogan vs. Akcansa Cimento Sanayi | Ditas Dogan vs. Gentas Genel Metal | Ditas Dogan vs. Bms Birlesik Metal | Ditas Dogan vs. Qnb Finansbank AS |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |