Correlation Between Koc Holdings and Akbank Turk
Can any of the company-specific risk be diversified away by investing in both Koc Holdings and Akbank Turk 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 Holdings and Akbank Turk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koc Holdings AS and Akbank Turk Anonim, you can compare the effects of market volatilities on Koc Holdings and Akbank Turk 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 Holdings with a short position of Akbank Turk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holdings and Akbank Turk.
Diversification Opportunities for Koc Holdings and Akbank Turk
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koc and Akbank is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holdings AS and Akbank Turk Anonim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akbank Turk Anonim and Koc Holdings 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 Holdings AS are associated (or correlated) with Akbank Turk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akbank Turk Anonim has no effect on the direction of Koc Holdings i.e., Koc Holdings and Akbank Turk go up and down completely randomly.
Pair Corralation between Koc Holdings and Akbank Turk
Assuming the 90 days horizon Koc Holdings is expected to generate 2.25 times less return on investment than Akbank Turk. But when comparing it to its historical volatility, Koc Holdings AS is 1.42 times less risky than Akbank Turk. It trades about 0.05 of its potential returns per unit of risk. Akbank Turk Anonim is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 158.00 in Akbank Turk Anonim on September 1, 2024 and sell it today you would earn a total of 188.00 from holding Akbank Turk Anonim or generate 118.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.92% |
| Values | Daily Returns |
Koc Holdings AS vs. Akbank Turk Anonim
Performance |
| Timeline |
| Koc Holdings AS |
| Akbank Turk Anonim |
Koc Holdings and Akbank Turk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koc Holdings and Akbank Turk
The main advantage of trading using opposite Koc Holdings and Akbank Turk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holdings position performs unexpectedly, Akbank Turk 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 Akbank Turk will offset losses from the drop in Akbank Turk's long position.| Koc Holdings vs. Akbank Turk Anonim | Koc Holdings vs. Turkiye Garanti Bankasi | Koc Holdings vs. Astra International Tbk | Koc Holdings vs. Bank Mandiri Persero |
| Akbank Turk vs. Commercial International Bank | Akbank Turk vs. Kasikornbank Public Co | Akbank Turk vs. PT Bank Central | Akbank Turk vs. PT Bank Rakyat |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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