Correlation Between Koc Holding and Yapi Ve
Can any of the company-specific risk be diversified away by investing in both Koc Holding and Yapi Ve 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 Yapi Ve 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 Yapi ve Kredi, you can compare the effects of market volatilities on Koc Holding and Yapi Ve 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 Yapi Ve. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holding and Yapi Ve.
Diversification Opportunities for Koc Holding and Yapi Ve
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koc and Yapi is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holding AS and Yapi ve Kredi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yapi ve Kredi 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 Yapi Ve. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yapi ve Kredi has no effect on the direction of Koc Holding i.e., Koc Holding and Yapi Ve go up and down completely randomly.
Pair Corralation between Koc Holding and Yapi Ve
Assuming the 90 days trading horizon Koc Holding is expected to generate 1.05 times less return on investment than Yapi Ve. But when comparing it to its historical volatility, Koc Holding AS is 1.2 times less risky than Yapi Ve. It trades about 0.1 of its potential returns per unit of risk. Yapi ve Kredi is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,020 in Yapi ve Kredi on August 31, 2024 and sell it today you would earn a total of 2,072 from holding Yapi ve Kredi or generate 203.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koc Holding AS vs. Yapi ve Kredi
Performance |
| Timeline |
| Koc Holding AS |
| Yapi ve Kredi |
Koc Holding and Yapi Ve Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holding and Yapi Ve
The main advantage of trading using opposite Koc Holding and Yapi Ve positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holding position performs unexpectedly, Yapi Ve 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 Yapi Ve will offset losses from the drop in Yapi Ve'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 |
| Yapi Ve vs. Cuhadaroglu Metal Sanayi | Yapi Ve vs. MEGA METAL | Yapi Ve vs. Koza Anadolu Metal | Yapi Ve vs. Politeknik Metal Sanayi |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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