Correlation Between Turkiye Kalkinma and Kardemir Karabuk
Can any of the company-specific risk be diversified away by investing in both Turkiye Kalkinma and Kardemir Karabuk 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 Turkiye Kalkinma and Kardemir Karabuk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Kalkinma Bankasi and Kardemir Karabuk Demir, you can compare the effects of market volatilities on Turkiye Kalkinma and Kardemir Karabuk 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 Turkiye Kalkinma with a short position of Kardemir Karabuk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Kalkinma and Kardemir Karabuk.
Diversification Opportunities for Turkiye Kalkinma and Kardemir Karabuk
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Turkiye and Kardemir is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Kalkinma Bankasi and Kardemir Karabuk Demir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardemir Karabuk Demir and Turkiye Kalkinma 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 Turkiye Kalkinma Bankasi are associated (or correlated) with Kardemir Karabuk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardemir Karabuk Demir has no effect on the direction of Turkiye Kalkinma i.e., Turkiye Kalkinma and Kardemir Karabuk go up and down completely randomly.
Pair Corralation between Turkiye Kalkinma and Kardemir Karabuk
Assuming the 90 days trading horizon Turkiye Kalkinma is expected to generate 1.88 times less return on investment than Kardemir Karabuk. But when comparing it to its historical volatility, Turkiye Kalkinma Bankasi is 1.77 times less risky than Kardemir Karabuk. It trades about 0.15 of its potential returns per unit of risk. Kardemir Karabuk Demir is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,494 in Kardemir Karabuk Demir on August 31, 2024 and sell it today you would earn a total of 204.00 from holding Kardemir Karabuk Demir or generate 8.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Kalkinma Bankasi vs. Kardemir Karabuk Demir
Performance |
| Timeline |
| Turkiye Kalkinma Bankasi |
| Kardemir Karabuk Demir |
Turkiye Kalkinma and Kardemir Karabuk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Kalkinma and Kardemir Karabuk
The main advantage of trading using opposite Turkiye Kalkinma and Kardemir Karabuk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Kalkinma position performs unexpectedly, Kardemir Karabuk 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 Kardemir Karabuk will offset losses from the drop in Kardemir Karabuk's long position.| Turkiye Kalkinma vs. Qnb Finansbank AS | Turkiye Kalkinma vs. Turkiye Vakiflar Bankasi | Turkiye Kalkinma vs. Turkiye Halk Bankasi | Turkiye Kalkinma vs. Turkiye Sinai Kalkinma |
| Kardemir Karabuk vs. Koza Anadolu Metal | Kardemir Karabuk vs. Bms Birlesik Metal | Kardemir Karabuk vs. ICBC Turkey Bank | Kardemir Karabuk vs. Gentas Genel Metal |
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.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |