Correlation Between Koc Holding and Desa Deri
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Desa Deri 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 Desa Deri 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 Desa Deri Sanayi, you can compare the effects of market volatilities on Koc Holding and Desa Deri 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 Desa Deri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Desa Deri.
Diversification Opportunities for Koc Holding and Desa Deri
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koc and Desa is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Desa Deri Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Desa Deri Sanayi 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 Desa Deri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Desa Deri Sanayi has no effect on the direction of Koc Holding i.e., Koc Holding and Desa Deri go up and down completely randomly.
Pair Corralation between Koc Holding and Desa Deri
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.93 times more return on investment than Desa Deri. However, Koc Holding AS is 1.07 times less risky than Desa Deri. It trades about 0.14 of its potential returns per unit of risk. Desa Deri Sanayi is currently generating about -0.01 per unit of risk. If you would invest 17,740 in Koc Holding AS on September 5, 2024 and sell it today you would earn a total of 2,120 from holding Koc Holding AS or generate 11.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Desa Deri Sanayi
Performance |
| Timeline |
| Koc Holding AS |
| Desa Deri Sanayi |
Koc Holding and Desa Deri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Desa Deri
The main advantage of trading using opposite Koc Holding and Desa Deri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Desa Deri 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 Desa Deri will offset losses from the drop in Desa Deri'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 |
| Desa Deri vs. Koc Holding AS | Desa Deri vs. Eregli Demir ve | Desa Deri vs. Turkiye Sise ve | Desa Deri vs. Turkcell Iletisim Hizmetleri |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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