Correlation Between Kocaer Celik and Baticim Bati
Can any of the company-specific risk be diversified away by investing in both Kocaer Celik and Baticim Bati 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 Kocaer Celik and Baticim Bati into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kocaer Celik Sanayi and Baticim Bati Anadolu, you can compare the effects of market volatilities on Kocaer Celik and Baticim Bati 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 Kocaer Celik with a short position of Baticim Bati. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kocaer Celik and Baticim Bati.
Diversification Opportunities for Kocaer Celik and Baticim Bati
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Kocaer and Baticim is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik Sanayi and Baticim Bati Anadolu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baticim Bati Anadolu and Kocaer Celik 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 Kocaer Celik Sanayi are associated (or correlated) with Baticim Bati. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baticim Bati Anadolu has no effect on the direction of Kocaer Celik i.e., Kocaer Celik and Baticim Bati go up and down completely randomly.
Pair Corralation between Kocaer Celik and Baticim Bati
Assuming the 90 days trading horizon Kocaer Celik Sanayi is expected to generate 0.67 times more return on investment than Baticim Bati. However, Kocaer Celik Sanayi is 1.49 times less risky than Baticim Bati. It trades about 0.13 of its potential returns per unit of risk. Baticim Bati Anadolu is currently generating about -0.1 per unit of risk. If you would invest 1,284 in Kocaer Celik Sanayi on September 5, 2024 and sell it today you would earn a total of 147.00 from holding Kocaer Celik Sanayi or generate 11.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kocaer Celik Sanayi vs. Baticim Bati Anadolu
Performance |
| Timeline |
| Kocaer Celik Sanayi |
| Baticim Bati Anadolu |
Kocaer Celik and Baticim Bati Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kocaer Celik and Baticim Bati
The main advantage of trading using opposite Kocaer Celik and Baticim Bati positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kocaer Celik position performs unexpectedly, Baticim Bati 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 Baticim Bati will offset losses from the drop in Baticim Bati's long position.| Kocaer Celik vs. Eregli Demir ve | Kocaer Celik vs. Iskenderun Demir ve | Kocaer Celik vs. Borusan Yatirim ve | Kocaer Celik vs. Kardemir Karabuk Demir |
| Baticim Bati vs. Qnb Finansbank AS | Baticim Bati vs. Turkiye Kalkinma Bankasi | Baticim Bati vs. Kocaer Celik 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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