Correlation Between KOC METALURJI and Hitit Bilgisayar
Can any of the company-specific risk be diversified away by investing in both KOC METALURJI and Hitit Bilgisayar 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 Hitit Bilgisayar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOC METALURJI and Hitit Bilgisayar Hizmetleri, you can compare the effects of market volatilities on KOC METALURJI and Hitit Bilgisayar 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 Hitit Bilgisayar. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOC METALURJI and Hitit Bilgisayar.
Diversification Opportunities for KOC METALURJI and Hitit Bilgisayar
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KOC and Hitit is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and Hitit Bilgisayar Hizmetleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hitit Bilgisayar Hiz 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 Hitit Bilgisayar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hitit Bilgisayar Hiz has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and Hitit Bilgisayar go up and down completely randomly.
Pair Corralation between KOC METALURJI and Hitit Bilgisayar
Assuming the 90 days trading horizon KOC METALURJI is expected to generate 0.74 times more return on investment than Hitit Bilgisayar. However, KOC METALURJI is 1.35 times less risky than Hitit Bilgisayar. It trades about -0.02 of its potential returns per unit of risk. Hitit Bilgisayar Hizmetleri is currently generating about -0.09 per unit of risk. If you would invest 1,610 in KOC METALURJI on October 23, 2024 and sell it today you would lose (30.00) from holding KOC METALURJI or give up 1.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KOC METALURJI vs. Hitit Bilgisayar Hizmetleri
Performance |
| Timeline |
| KOC METALURJI |
| Hitit Bilgisayar Hiz |
KOC METALURJI and Hitit Bilgisayar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOC METALURJI and Hitit Bilgisayar
The main advantage of trading using opposite KOC METALURJI and Hitit Bilgisayar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOC METALURJI position performs unexpectedly, Hitit Bilgisayar 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 Hitit Bilgisayar will offset losses from the drop in Hitit Bilgisayar's long position.| KOC METALURJI vs. MEGA METAL | KOC METALURJI vs. Cuhadaroglu Metal Sanayi | KOC METALURJI vs. Gentas Genel Metal | KOC METALURJI vs. Koza Anadolu Metal |
| Hitit Bilgisayar vs. KOC METALURJI | Hitit Bilgisayar vs. Turkiye Kalkinma Bankasi | Hitit Bilgisayar vs. Cuhadaroglu Metal Sanayi | Hitit Bilgisayar vs. Bms Birlesik 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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