Correlation Between Kartonsan Karton and Konya Cimento
Can any of the company-specific risk be diversified away by investing in both Kartonsan Karton and Konya Cimento 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 Kartonsan Karton and Konya Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kartonsan Karton Sanayi and Konya Cimento Sanayi, you can compare the effects of market volatilities on Kartonsan Karton and Konya Cimento 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 Kartonsan Karton with a short position of Konya Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kartonsan Karton and Konya Cimento.
Diversification Opportunities for Kartonsan Karton and Konya Cimento
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kartonsan and Konya is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Kartonsan Karton Sanayi and Konya Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konya Cimento Sanayi and Kartonsan Karton 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 Kartonsan Karton Sanayi are associated (or correlated) with Konya Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konya Cimento Sanayi has no effect on the direction of Kartonsan Karton i.e., Kartonsan Karton and Konya Cimento go up and down completely randomly.
Pair Corralation between Kartonsan Karton and Konya Cimento
Assuming the 90 days trading horizon Kartonsan Karton Sanayi is expected to generate 2.49 times more return on investment than Konya Cimento. However, Kartonsan Karton is 2.49 times more volatile than Konya Cimento Sanayi. It trades about 0.22 of its potential returns per unit of risk. Konya Cimento Sanayi is currently generating about -0.06 per unit of risk. If you would invest 9,200 in Kartonsan Karton Sanayi on November 1, 2024 and sell it today you would earn a total of 2,250 from holding Kartonsan Karton Sanayi or generate 24.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kartonsan Karton Sanayi vs. Konya Cimento Sanayi
Performance |
| Timeline |
| Kartonsan Karton Sanayi |
| Konya Cimento Sanayi |
Kartonsan Karton and Konya Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kartonsan Karton and Konya Cimento
The main advantage of trading using opposite Kartonsan Karton and Konya Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kartonsan Karton position performs unexpectedly, Konya Cimento 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 Konya Cimento will offset losses from the drop in Konya Cimento's long position.| Kartonsan Karton vs. Ege Endustri ve | Kartonsan Karton vs. Otokar Otomotiv ve | Kartonsan Karton vs. BIM Birlesik Magazalar | Kartonsan Karton vs. Alkim Alkali Kimya |
| Konya Cimento vs. Ege Endustri ve | Konya Cimento vs. Kartonsan Karton Sanayi | Konya Cimento vs. Nuh Cimento Sanayi | Konya Cimento vs. Afyon Cimento Sanayi |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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