Correlation Between Koc Holding and Oylum Sinai
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Oylum Sinai 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 Oylum Sinai 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 Oylum Sinai Yatirimlar, you can compare the effects of market volatilities on Koc Holding and Oylum Sinai 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 Oylum Sinai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Oylum Sinai.
Diversification Opportunities for Koc Holding and Oylum Sinai
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koc and Oylum is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Oylum Sinai Yatirimlar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oylum Sinai Yatirimlar 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 Oylum Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oylum Sinai Yatirimlar has no effect on the direction of Koc Holding i.e., Koc Holding and Oylum Sinai go up and down completely randomly.
Pair Corralation between Koc Holding and Oylum Sinai
Assuming the 90 days trading horizon Koc Holding is expected to generate 3.35 times less return on investment than Oylum Sinai. But when comparing it to its historical volatility, Koc Holding AS is 1.19 times less risky than Oylum Sinai. It trades about 0.03 of its potential returns per unit of risk. Oylum Sinai Yatirimlar is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 743.00 in Oylum Sinai Yatirimlar on October 25, 2024 and sell it today you would earn a total of 79.00 from holding Oylum Sinai Yatirimlar or generate 10.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
Koc Holding AS vs. Oylum Sinai Yatirimlar
Performance |
| Timeline |
| Koc Holding AS |
| Oylum Sinai Yatirimlar |
Koc Holding and Oylum Sinai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Oylum Sinai
The main advantage of trading using opposite Koc Holding and Oylum Sinai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Oylum Sinai 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 Oylum Sinai will offset losses from the drop in Oylum Sinai'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 |
| Oylum Sinai vs. Koc Holding AS | Oylum Sinai vs. Turkish Airlines | Oylum Sinai vs. Turkiye Garanti Bankasi | Oylum Sinai vs. Turkiye Petrol Rafinerileri |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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