Correlation Between Koc Holdings and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Koc Holdings and Dow Jones 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 Dow Jones 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 Dow Jones Industrial, you can compare the effects of market volatilities on Koc Holdings and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koc Holdings and Dow Jones.
Diversification Opportunities for Koc Holdings and Dow Jones
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koc and Dow is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Koc Holdings AS and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Koc Holdings i.e., Koc Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between Koc Holdings and Dow Jones
Assuming the 90 days horizon Koc Holdings AS is expected to generate 4.02 times more return on investment than Dow Jones. However, Koc Holdings is 4.02 times more volatile than Dow Jones Industrial. It trades about 0.05 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of risk. If you would invest 1,717 in Koc Holdings AS on August 29, 2024 and sell it today you would earn a total of 1,094 from holding Koc Holdings AS or generate 63.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.39% |
| Values | Daily Returns |
Koc Holdings AS vs. Dow Jones Industrial
Performance |
| Timeline |
Koc Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Koc Holdings AS
Pair trading matchups for Koc Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Koc Holdings and Dow Jones
The main advantage of trading using opposite Koc Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koc Holdings position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' 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 |
| Dow Jones vs. CECO Environmental Corp | Dow Jones vs. Western Acquisition Ventures | Dow Jones vs. Tyson Foods | Dow Jones vs. Inflection Point Acquisition |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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