Correlation Between Kocaer Celik and Kent Gida
Can any of the company-specific risk be diversified away by investing in both Kocaer Celik and Kent Gida 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 Kent Gida 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 Kent Gida Maddeleri, you can compare the effects of market volatilities on Kocaer Celik and Kent Gida 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 Kent Gida. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kocaer Celik and Kent Gida.
Diversification Opportunities for Kocaer Celik and Kent Gida
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kocaer and Kent is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik Sanayi and Kent Gida Maddeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kent Gida Maddeleri 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 Kent Gida. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kent Gida Maddeleri has no effect on the direction of Kocaer Celik i.e., Kocaer Celik and Kent Gida go up and down completely randomly.
Pair Corralation between Kocaer Celik and Kent Gida
Assuming the 90 days trading horizon Kocaer Celik Sanayi is expected to generate 0.65 times more return on investment than Kent Gida. However, Kocaer Celik Sanayi is 1.53 times less risky than Kent Gida. It trades about 0.2 of its potential returns per unit of risk. Kent Gida Maddeleri is currently generating about 0.03 per unit of risk. If you would invest 1,290 in Kocaer Celik Sanayi on August 31, 2024 and sell it today you would earn a total of 126.00 from holding Kocaer Celik Sanayi or generate 9.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kocaer Celik Sanayi vs. Kent Gida Maddeleri
Performance |
| Timeline |
| Kocaer Celik Sanayi |
| Kent Gida Maddeleri |
Kocaer Celik and Kent Gida Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kocaer Celik and Kent Gida
The main advantage of trading using opposite Kocaer Celik and Kent Gida positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kocaer Celik position performs unexpectedly, Kent Gida 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 Kent Gida will offset losses from the drop in Kent Gida'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 |
| Kent Gida vs. Eregli Demir ve | Kent Gida vs. Turkiye Petrol Rafinerileri | Kent Gida vs. Turkiye Sise ve | Kent Gida vs. Ford Otomotiv 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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |