Correlation Between Koc Holding and Anel Elektrik
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Anel Elektrik 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 Koc Holding and Anel Elektrik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koc Holding AS and Anel Elektrik Proje, you can compare the effects of market volatilities on Koc Holding and Anel Elektrik 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 Koc Holding with a short position of Anel Elektrik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Anel Elektrik.
Diversification Opportunities for Koc Holding and Anel Elektrik
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Koc and Anel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Anel Elektrik Proje in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anel Elektrik Proje and Koc Holding 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 Koc Holding AS are associated (or correlated) with Anel Elektrik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anel Elektrik Proje has no effect on the direction of Koc Holding i.e., Koc Holding and Anel Elektrik go up and down completely randomly.
Pair Corralation between Koc Holding and Anel Elektrik
Assuming the 90 days trading horizon Koc Holding is expected to generate 1.1 times less return on investment than Anel Elektrik. But when comparing it to its historical volatility, Koc Holding AS is 1.62 times less risky than Anel Elektrik. It trades about 0.08 of its potential returns per unit of risk. Anel Elektrik Proje is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,008 in Anel Elektrik Proje on September 4, 2024 and sell it today you would earn a total of 381.00 from holding Anel Elektrik Proje or generate 37.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Anel Elektrik Proje
Performance |
| Timeline |
| Koc Holding AS |
| Anel Elektrik Proje |
Koc Holding and Anel Elektrik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Anel Elektrik
The main advantage of trading using opposite Koc Holding and Anel Elektrik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Anel Elektrik 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 Anel Elektrik will offset losses from the drop in Anel Elektrik's long position.| Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Arcelik AS | Koc Holding vs. Turkiye Garanti Bankasi | Koc Holding vs. Akbank TAS |
| Anel Elektrik vs. Turkiye Petrol Rafinerileri | Anel Elektrik vs. Arcelik AS | Anel Elektrik vs. Turkiye Garanti Bankasi | Anel Elektrik vs. Akbank 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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