Correlation Between Koc Holding and Ipek Dogal
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Ipek Dogal 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 Ipek Dogal 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 Ipek Dogal Enerji, you can compare the effects of market volatilities on Koc Holding and Ipek Dogal 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 Ipek Dogal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Ipek Dogal.
Diversification Opportunities for Koc Holding and Ipek Dogal
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koc and Ipek is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Ipek Dogal Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipek Dogal Enerji 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 Ipek Dogal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipek Dogal Enerji has no effect on the direction of Koc Holding i.e., Koc Holding and Ipek Dogal go up and down completely randomly.
Pair Corralation between Koc Holding and Ipek Dogal
Assuming the 90 days trading horizon Koc Holding is expected to generate 1.91 times less return on investment than Ipek Dogal. But when comparing it to its historical volatility, Koc Holding AS is 1.37 times less risky than Ipek Dogal. It trades about 0.06 of its potential returns per unit of risk. Ipek Dogal Enerji is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4,540 in Ipek Dogal Enerji on August 28, 2024 and sell it today you would earn a total of 575.00 from holding Ipek Dogal Enerji or generate 12.67% 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. Ipek Dogal Enerji
Performance |
| Timeline |
| Koc Holding AS |
| Ipek Dogal Enerji |
Koc Holding and Ipek Dogal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Ipek Dogal
The main advantage of trading using opposite Koc Holding and Ipek Dogal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Ipek Dogal 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 Ipek Dogal will offset losses from the drop in Ipek Dogal'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 |
| Ipek Dogal vs. Koza Anadolu Metal | Ipek Dogal vs. Koza Altin Isletmeleri | Ipek Dogal vs. Vestel Elektronik Sanayi | Ipek Dogal vs. Petkim Petrokimya Holding |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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