Correlation Between Koc Holding and Nurol Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Nurol Gayrimenkul 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 Nurol Gayrimenkul 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 Nurol Gayrimenkul Yatirim, you can compare the effects of market volatilities on Koc Holding and Nurol Gayrimenkul 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 Nurol Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Nurol Gayrimenkul.
Diversification Opportunities for Koc Holding and Nurol Gayrimenkul
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koc and Nurol is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Nurol Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nurol Gayrimenkul Yatirim 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 Nurol Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nurol Gayrimenkul Yatirim has no effect on the direction of Koc Holding i.e., Koc Holding and Nurol Gayrimenkul go up and down completely randomly.
Pair Corralation between Koc Holding and Nurol Gayrimenkul
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.78 times more return on investment than Nurol Gayrimenkul. However, Koc Holding AS is 1.28 times less risky than Nurol Gayrimenkul. It trades about 0.1 of its potential returns per unit of risk. Nurol Gayrimenkul Yatirim is currently generating about -0.08 per unit of risk. If you would invest 18,870 in Koc Holding AS on September 18, 2024 and sell it today you would earn a total of 560.00 from holding Koc Holding AS or generate 2.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Koc Holding AS vs. Nurol Gayrimenkul Yatirim
Performance |
| Timeline |
| Koc Holding AS |
| Nurol Gayrimenkul Yatirim |
Koc Holding and Nurol Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Nurol Gayrimenkul
The main advantage of trading using opposite Koc Holding and Nurol Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Nurol Gayrimenkul 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 Nurol Gayrimenkul will offset losses from the drop in Nurol Gayrimenkul'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 |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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