Correlation Between KOC METALURJI and Akcansa Cimento
Can any of the company-specific risk be diversified away by investing in both KOC METALURJI and Akcansa Cimento 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 METALURJI and Akcansa Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOC METALURJI and Akcansa Cimento Sanayi, you can compare the effects of market volatilities on KOC METALURJI and Akcansa Cimento 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 METALURJI with a short position of Akcansa Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOC METALURJI and Akcansa Cimento.
Diversification Opportunities for KOC METALURJI and Akcansa Cimento
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KOC and Akcansa is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and Akcansa Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akcansa Cimento Sanayi and KOC METALURJI 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 METALURJI are associated (or correlated) with Akcansa Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akcansa Cimento Sanayi has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and Akcansa Cimento go up and down completely randomly.
Pair Corralation between KOC METALURJI and Akcansa Cimento
Assuming the 90 days trading horizon KOC METALURJI is expected to under-perform the Akcansa Cimento. But the stock apears to be less risky and, when comparing its historical volatility, KOC METALURJI is 1.03 times less risky than Akcansa Cimento. The stock trades about -0.06 of its potential returns per unit of risk. The Akcansa Cimento Sanayi is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 4,972 in Akcansa Cimento Sanayi on October 25, 2024 and sell it today you would earn a total of 15,228 from holding Akcansa Cimento Sanayi or generate 306.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 34.95% |
| Values | Daily Returns |
KOC METALURJI vs. Akcansa Cimento Sanayi
Performance |
| Timeline |
| KOC METALURJI |
| Akcansa Cimento Sanayi |
KOC METALURJI and Akcansa Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOC METALURJI and Akcansa Cimento
The main advantage of trading using opposite KOC METALURJI and Akcansa Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOC METALURJI position performs unexpectedly, Akcansa Cimento 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 Akcansa Cimento will offset losses from the drop in Akcansa Cimento's long position.| KOC METALURJI vs. SASA Polyester Sanayi | KOC METALURJI vs. Turkish Airlines | KOC METALURJI vs. Koc Holding AS | KOC METALURJI vs. Ford Otomotiv Sanayi |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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