Correlation Between Koc Holding and Imas Makina
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Imas Makina 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 Imas Makina 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 Imas Makina Sanayi, you can compare the effects of market volatilities on Koc Holding and Imas Makina 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 Imas Makina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Imas Makina.
Diversification Opportunities for Koc Holding and Imas Makina
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koc and Imas is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Imas Makina Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imas Makina 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 Imas Makina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imas Makina Sanayi has no effect on the direction of Koc Holding i.e., Koc Holding and Imas Makina go up and down completely randomly.
Pair Corralation between Koc Holding and Imas Makina
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.63 times more return on investment than Imas Makina. However, Koc Holding AS is 1.6 times less risky than Imas Makina. It trades about 0.07 of its potential returns per unit of risk. Imas Makina Sanayi is currently generating about 0.0 per unit of risk. If you would invest 13,914 in Koc Holding AS on September 12, 2024 and sell it today you would earn a total of 5,606 from holding Koc Holding AS or generate 40.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Imas Makina Sanayi
Performance |
| Timeline |
| Koc Holding AS |
| Imas Makina Sanayi |
Koc Holding and Imas Makina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Imas Makina
The main advantage of trading using opposite Koc Holding and Imas Makina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Imas Makina 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 Imas Makina will offset losses from the drop in Imas Makina'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 |
| Imas Makina vs. SASA Polyester Sanayi | Imas Makina vs. Turkish Airlines | Imas Makina vs. Koc Holding AS | Imas Makina 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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