Correlation Between Katmerciler Arac and KOC METALURJI
Can any of the company-specific risk be diversified away by investing in both Katmerciler Arac and KOC METALURJI 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 Katmerciler Arac and KOC METALURJI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Katmerciler Arac Ustu and KOC METALURJI, you can compare the effects of market volatilities on Katmerciler Arac and KOC METALURJI 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 Katmerciler Arac with a short position of KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Katmerciler Arac and KOC METALURJI.
Diversification Opportunities for Katmerciler Arac and KOC METALURJI
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Katmerciler and KOC is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Katmerciler Arac Ustu and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI and Katmerciler Arac 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 Katmerciler Arac Ustu are associated (or correlated) with KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of Katmerciler Arac i.e., Katmerciler Arac and KOC METALURJI go up and down completely randomly.
Pair Corralation between Katmerciler Arac and KOC METALURJI
Assuming the 90 days trading horizon Katmerciler Arac Ustu is expected to generate 1.5 times more return on investment than KOC METALURJI. However, Katmerciler Arac is 1.5 times more volatile than KOC METALURJI. It trades about 0.1 of its potential returns per unit of risk. KOC METALURJI is currently generating about -0.08 per unit of risk. If you would invest 216.00 in Katmerciler Arac Ustu on October 9, 2024 and sell it today you would earn a total of 14.00 from holding Katmerciler Arac Ustu or generate 6.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Katmerciler Arac Ustu vs. KOC METALURJI
Performance |
| Timeline |
| Katmerciler Arac Ustu |
| KOC METALURJI |
Katmerciler Arac and KOC METALURJI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Katmerciler Arac and KOC METALURJI
The main advantage of trading using opposite Katmerciler Arac and KOC METALURJI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Katmerciler Arac position performs unexpectedly, KOC METALURJI 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 METALURJI will offset losses from the drop in KOC METALURJI's long position.| Katmerciler Arac vs. Trabzonspor Sportif Yatirim | Katmerciler Arac vs. Galatasaray Sportif Sinai | Katmerciler Arac vs. Bms Birlesik Metal | Katmerciler Arac vs. E Data Teknoloji Pazarlama |
| KOC METALURJI vs. Gentas Genel Metal | KOC METALURJI vs. Bms Birlesik Metal | KOC METALURJI vs. Politeknik Metal Sanayi | KOC METALURJI vs. Sekerbank TAS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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