Correlation Between Koc Holding and Turkiye Sinai
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Turkiye 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 Turkiye 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 Turkiye Sinai Kalkinma, you can compare the effects of market volatilities on Koc Holding and Turkiye 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 Turkiye Sinai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Turkiye Sinai.
Diversification Opportunities for Koc Holding and Turkiye Sinai
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koc and Turkiye is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Turkiye Sinai Kalkinma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turkiye Sinai Kalkinma 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 Turkiye Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turkiye Sinai Kalkinma has no effect on the direction of Koc Holding i.e., Koc Holding and Turkiye Sinai go up and down completely randomly.
Pair Corralation between Koc Holding and Turkiye Sinai
Assuming the 90 days trading horizon Koc Holding AS is expected to generate 0.93 times more return on investment than Turkiye Sinai. However, Koc Holding AS is 1.07 times less risky than Turkiye Sinai. It trades about 0.45 of its potential returns per unit of risk. Turkiye Sinai Kalkinma is currently generating about 0.12 per unit of risk. If you would invest 16,750 in Koc Holding AS on September 2, 2024 and sell it today you would earn a total of 3,300 from holding Koc Holding AS or generate 19.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Turkiye Sinai Kalkinma
Performance |
| Timeline |
| Koc Holding AS |
| Turkiye Sinai Kalkinma |
Koc Holding and Turkiye Sinai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Turkiye Sinai
The main advantage of trading using opposite Koc Holding and Turkiye Sinai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Turkiye 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 Turkiye Sinai will offset losses from the drop in Turkiye 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 |
| Turkiye Sinai vs. Yapi ve Kredi | Turkiye Sinai vs. Turkiye Is Bankasi | Turkiye Sinai vs. Akbank TAS | Turkiye Sinai vs. Turkiye Garanti Bankasi |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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