Correlation Between Koc Holding and CEO Event
Can any of the company-specific risk be diversified away by investing in both Koc Holding and CEO Event 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 CEO Event 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 CEO Event Medya, you can compare the effects of market volatilities on Koc Holding and CEO Event 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 CEO Event. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and CEO Event.
Diversification Opportunities for Koc Holding and CEO Event
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koc and CEO is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and CEO Event Medya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEO Event Medya 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 CEO Event. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEO Event Medya has no effect on the direction of Koc Holding i.e., Koc Holding and CEO Event go up and down completely randomly.
Pair Corralation between Koc Holding and CEO Event
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.4 times more return on investment than CEO Event. However, Koc Holding AS is 2.5 times less risky than CEO Event. It trades about 0.25 of its potential returns per unit of risk. CEO Event Medya is currently generating about -0.61 per unit of risk. If you would invest 16,990 in Koc Holding AS on August 24, 2024 and sell it today you would earn a total of 1,870 from holding Koc Holding AS or generate 11.01% 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. CEO Event Medya
Performance |
| Timeline |
| Koc Holding AS |
| CEO Event Medya |
Koc Holding and CEO Event Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and CEO Event
The main advantage of trading using opposite Koc Holding and CEO Event positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, CEO Event 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 CEO Event will offset losses from the drop in CEO Event's long position.| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi |
| CEO Event vs. Brisa Bridgestone Sabanci | CEO Event vs. Dogus Gayrimenkul Yatirim | CEO Event vs. IZDEMIR Enerji Elektrik | CEO Event vs. Margun Enerji Uretim |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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