Correlation Between Koc Holding and SASA Polyester
Can any of the company-specific risk be diversified away by investing in both Koc Holding and SASA Polyester 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 SASA Polyester 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 SASA Polyester Sanayi, you can compare the effects of market volatilities on Koc Holding and SASA Polyester 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 SASA Polyester. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and SASA Polyester.
Diversification Opportunities for Koc Holding and SASA Polyester
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Koc and SASA is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and SASA Polyester Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SASA Polyester 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 SASA Polyester. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SASA Polyester Sanayi has no effect on the direction of Koc Holding i.e., Koc Holding and SASA Polyester go up and down completely randomly.
Pair Corralation between Koc Holding and SASA Polyester
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.75 times more return on investment than SASA Polyester. However, Koc Holding AS is 1.33 times less risky than SASA Polyester. It trades about -0.27 of its potential returns per unit of risk. SASA Polyester Sanayi is currently generating about -0.28 per unit of risk. If you would invest 18,490 in Koc Holding AS on November 2, 2024 and sell it today you would lose (1,360) from holding Koc Holding AS or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. SASA Polyester Sanayi
Performance |
| Timeline |
| Koc Holding AS |
| SASA Polyester Sanayi |
Koc Holding and SASA Polyester Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and SASA Polyester
The main advantage of trading using opposite Koc Holding and SASA Polyester positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, SASA Polyester 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 SASA Polyester will offset losses from the drop in SASA Polyester'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 |
| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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