Correlation Between Koc Holding and Mavi Giyim
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Mavi Giyim 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 Mavi Giyim 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 Mavi Giyim Sanayi, you can compare the effects of market volatilities on Koc Holding and Mavi Giyim 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 Mavi Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Mavi Giyim.
Diversification Opportunities for Koc Holding and Mavi Giyim
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koc and Mavi is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Mavi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mavi Giyim 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 Mavi Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mavi Giyim Sanayi has no effect on the direction of Koc Holding i.e., Koc Holding and Mavi Giyim go up and down completely randomly.
Pair Corralation between Koc Holding and Mavi Giyim
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.91 times more return on investment than Mavi Giyim. However, Koc Holding AS is 1.1 times less risky than Mavi Giyim. It trades about -0.02 of its potential returns per unit of risk. Mavi Giyim Sanayi is currently generating about -0.04 per unit of risk. If you would invest 21,300 in Koc Holding AS on September 5, 2024 and sell it today you would lose (1,830) from holding Koc Holding AS or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Mavi Giyim Sanayi
Performance |
| Timeline |
| Koc Holding AS |
| Mavi Giyim Sanayi |
Koc Holding and Mavi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Mavi Giyim
The main advantage of trading using opposite Koc Holding and Mavi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Mavi Giyim 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 Mavi Giyim will offset losses from the drop in Mavi Giyim'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 |
| Mavi Giyim vs. Koc Holding AS | Mavi Giyim vs. Eregli Demir ve | Mavi Giyim vs. Turkiye Sise ve | Mavi Giyim 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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