Correlation Between KOC METALURJI and Trend Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both KOC METALURJI and Trend Gayrimenkul 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 Trend Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KOC METALURJI and Trend Gayrimenkul Yatirim, you can compare the effects of market volatilities on KOC METALURJI and Trend Gayrimenkul 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 Trend Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of KOC METALURJI and Trend Gayrimenkul.
Diversification Opportunities for KOC METALURJI and Trend Gayrimenkul
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between KOC and Trend is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding KOC METALURJI and Trend Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trend Gayrimenkul Yatirim 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 Trend Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trend Gayrimenkul Yatirim has no effect on the direction of KOC METALURJI i.e., KOC METALURJI and Trend Gayrimenkul go up and down completely randomly.
Pair Corralation between KOC METALURJI and Trend Gayrimenkul
Assuming the 90 days trading horizon KOC METALURJI is expected to under-perform the Trend Gayrimenkul. But the stock apears to be less risky and, when comparing its historical volatility, KOC METALURJI is 2.25 times less risky than Trend Gayrimenkul. The stock trades about -0.04 of its potential returns per unit of risk. The Trend Gayrimenkul Yatirim is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 590.00 in Trend Gayrimenkul Yatirim on October 16, 2024 and sell it today you would earn a total of 639.00 from holding Trend Gayrimenkul Yatirim or generate 108.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 33.4% |
| Values | Daily Returns |
KOC METALURJI vs. Trend Gayrimenkul Yatirim
Performance |
| Timeline |
| KOC METALURJI |
| Trend Gayrimenkul Yatirim |
KOC METALURJI and Trend Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KOC METALURJI and Trend Gayrimenkul
The main advantage of trading using opposite KOC METALURJI and Trend Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KOC METALURJI position performs unexpectedly, Trend Gayrimenkul 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 Trend Gayrimenkul will offset losses from the drop in Trend Gayrimenkul's long position.| KOC METALURJI vs. Politeknik Metal Sanayi | KOC METALURJI vs. Cuhadaroglu Metal Sanayi | KOC METALURJI vs. Turkiye Kalkinma Bankasi | KOC METALURJI vs. Borlease Otomotiv AS |
| Trend Gayrimenkul vs. Bms Birlesik Metal | Trend Gayrimenkul vs. MEGA METAL | Trend Gayrimenkul vs. KOC METALURJI | Trend Gayrimenkul vs. Koza Anadolu 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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