Correlation Between Koc Holding and Rodrigo Tekstil
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Rodrigo Tekstil 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 Rodrigo Tekstil 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 Rodrigo Tekstil Sanayi, you can compare the effects of market volatilities on Koc Holding and Rodrigo Tekstil 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 Rodrigo Tekstil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Rodrigo Tekstil.
Diversification Opportunities for Koc Holding and Rodrigo Tekstil
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koc and Rodrigo is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Rodrigo Tekstil Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rodrigo Tekstil 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 Rodrigo Tekstil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rodrigo Tekstil Sanayi has no effect on the direction of Koc Holding i.e., Koc Holding and Rodrigo Tekstil go up and down completely randomly.
Pair Corralation between Koc Holding and Rodrigo Tekstil
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.95 times more return on investment than Rodrigo Tekstil. However, Koc Holding AS is 1.05 times less risky than Rodrigo Tekstil. It trades about 0.62 of its potential returns per unit of risk. Rodrigo Tekstil Sanayi is currently generating about 0.02 per unit of risk. If you would invest 16,210 in Koc Holding AS on September 3, 2024 and sell it today you would earn a total of 3,840 from holding Koc Holding AS or generate 23.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Rodrigo Tekstil Sanayi
Performance |
| Timeline |
| Koc Holding AS |
| Rodrigo Tekstil Sanayi |
Koc Holding and Rodrigo Tekstil Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Rodrigo Tekstil
The main advantage of trading using opposite Koc Holding and Rodrigo Tekstil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Rodrigo Tekstil 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 Rodrigo Tekstil will offset losses from the drop in Rodrigo Tekstil'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 |
| Rodrigo Tekstil vs. Koc Holding AS | Rodrigo Tekstil vs. Eregli Demir ve | Rodrigo Tekstil vs. Turkiye Sise ve | Rodrigo Tekstil 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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