Correlation Between Kocaer Celik and Konya Cimento
Can any of the company-specific risk be diversified away by investing in both Kocaer Celik 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 Kocaer Celik and Konya Cimento 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 Konya Cimento Sanayi, you can compare the effects of market volatilities on Kocaer Celik 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 Kocaer Celik with a short position of Konya Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kocaer Celik and Konya Cimento.
Diversification Opportunities for Kocaer Celik and Konya Cimento
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Kocaer and Konya is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Kocaer Celik 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 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 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 Kocaer Celik i.e., Kocaer Celik and Konya Cimento go up and down completely randomly.
Pair Corralation between Kocaer Celik and Konya Cimento
If you would invest 619,000 in Konya Cimento Sanayi on November 8, 2024 and sell it today you would earn a total of 0.00 from holding Konya Cimento Sanayi or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 1.56% |
| Values | Daily Returns |
Kocaer Celik Sanayi vs. Konya Cimento Sanayi
Performance |
| Timeline |
| Kocaer Celik Sanayi |
| Konya Cimento Sanayi |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Kocaer Celik and Konya Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kocaer Celik and Konya Cimento
The main advantage of trading using opposite Kocaer Celik and Konya Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kocaer Celik 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.| Kocaer Celik vs. Turkish Airlines | Kocaer Celik vs. Qnb Finansbank AS | Kocaer Celik vs. Galatasaray Sportif Sinai | Kocaer Celik vs. Politeknik Metal Sanayi |
| Konya Cimento vs. Ege Endustri ve | Konya Cimento vs. Kartonsan Karton Sanayi | Konya Cimento vs. Afyon Cimento Sanayi | Konya Cimento vs. Cimsa 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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