Correlation Between Kocaer Celik and Hedef Girisim
Can any of the company-specific risk be diversified away by investing in both Kocaer Celik and Hedef Girisim 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 Hedef Girisim 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 Hedef Girisim Sermayesi, you can compare the effects of market volatilities on Kocaer Celik and Hedef Girisim 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 Hedef Girisim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kocaer Celik and Hedef Girisim.
Diversification Opportunities for Kocaer Celik and Hedef Girisim
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kocaer and Hedef is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik Sanayi and Hedef Girisim Sermayesi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedef Girisim Sermayesi 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 Hedef Girisim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedef Girisim Sermayesi has no effect on the direction of Kocaer Celik i.e., Kocaer Celik and Hedef Girisim go up and down completely randomly.
Pair Corralation between Kocaer Celik and Hedef Girisim
Assuming the 90 days trading horizon Kocaer Celik Sanayi is expected to generate 2.52 times more return on investment than Hedef Girisim. However, Kocaer Celik is 2.52 times more volatile than Hedef Girisim Sermayesi. It trades about 0.04 of its potential returns per unit of risk. Hedef Girisim Sermayesi is currently generating about 0.0 per unit of risk. If you would invest 809.00 in Kocaer Celik Sanayi on September 2, 2024 and sell it today you would earn a total of 616.00 from holding Kocaer Celik Sanayi or generate 76.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.2% |
| Values | Daily Returns |
Kocaer Celik Sanayi vs. Hedef Girisim Sermayesi
Performance |
| Timeline |
| Kocaer Celik Sanayi |
| Hedef Girisim Sermayesi |
Kocaer Celik and Hedef Girisim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kocaer Celik and Hedef Girisim
The main advantage of trading using opposite Kocaer Celik and Hedef Girisim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kocaer Celik position performs unexpectedly, Hedef Girisim 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 Hedef Girisim will offset losses from the drop in Hedef Girisim's long position.| Kocaer Celik vs. Cuhadaroglu Metal Sanayi | Kocaer Celik vs. Koza Anadolu Metal | Kocaer Celik vs. Akbank TAS | Kocaer Celik vs. Sekerbank TAS |
| Hedef Girisim vs. Mackolik Internet Hizmetleri | Hedef Girisim vs. Datagate Bilgisayar Malzemeleri | Hedef Girisim vs. Koza Anadolu Metal | Hedef Girisim vs. Gentas Genel Metal |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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