Correlation Between Koc Holding and Kimteks Poliuretan
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Kimteks Poliuretan 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 Kimteks Poliuretan 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 Kimteks Poliuretan Sanayi, you can compare the effects of market volatilities on Koc Holding and Kimteks Poliuretan 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 Kimteks Poliuretan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Kimteks Poliuretan.
Diversification Opportunities for Koc Holding and Kimteks Poliuretan
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koc and Kimteks is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Kimteks Poliuretan Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimteks Poliuretan 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 Kimteks Poliuretan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimteks Poliuretan Sanayi has no effect on the direction of Koc Holding i.e., Koc Holding and Kimteks Poliuretan go up and down completely randomly.
Pair Corralation between Koc Holding and Kimteks Poliuretan
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.94 times more return on investment than Kimteks Poliuretan. However, Koc Holding AS is 1.06 times less risky than Kimteks Poliuretan. It trades about 0.07 of its potential returns per unit of risk. Kimteks Poliuretan Sanayi is currently generating about -0.09 per unit of risk. If you would invest 13,780 in Koc Holding AS on September 15, 2024 and sell it today you would earn a total of 5,900 from holding Koc Holding AS or generate 42.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Kimteks Poliuretan Sanayi
Performance |
| Timeline |
| Koc Holding AS |
| Kimteks Poliuretan Sanayi |
Koc Holding and Kimteks Poliuretan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Kimteks Poliuretan
The main advantage of trading using opposite Koc Holding and Kimteks Poliuretan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Kimteks Poliuretan 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 Kimteks Poliuretan will offset losses from the drop in Kimteks Poliuretan's long position.| Koc Holding vs. Ege Endustri ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi | Koc Holding vs. Turkish Airlines |
| Kimteks Poliuretan vs. SASA Polyester Sanayi | Kimteks Poliuretan vs. Turkish Airlines | Kimteks Poliuretan vs. Koc Holding AS | Kimteks Poliuretan 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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