Correlation Between Koza Anadolu and Akfen Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Akfen 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 Koza Anadolu and Akfen Gayrimenkul into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koza Anadolu Metal and Akfen Gayrimenkul Yatirim, you can compare the effects of market volatilities on Koza Anadolu and Akfen 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 Koza Anadolu with a short position of Akfen Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Akfen Gayrimenkul.
Diversification Opportunities for Koza Anadolu and Akfen Gayrimenkul
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Koza and Akfen is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Akfen Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akfen Gayrimenkul Yatirim and Koza Anadolu 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 Koza Anadolu Metal are associated (or correlated) with Akfen Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akfen Gayrimenkul Yatirim has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Akfen Gayrimenkul go up and down completely randomly.
Pair Corralation between Koza Anadolu and Akfen Gayrimenkul
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.06 times more return on investment than Akfen Gayrimenkul. However, Koza Anadolu is 1.06 times more volatile than Akfen Gayrimenkul Yatirim. It trades about 0.04 of its potential returns per unit of risk. Akfen Gayrimenkul Yatirim is currently generating about 0.01 per unit of risk. If you would invest 5,670 in Koza Anadolu Metal on September 14, 2024 and sell it today you would earn a total of 1,380 from holding Koza Anadolu Metal or generate 24.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Akfen Gayrimenkul Yatirim
Performance |
| Timeline |
| Koza Anadolu Metal |
| Akfen Gayrimenkul Yatirim |
Koza Anadolu and Akfen Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Akfen Gayrimenkul
The main advantage of trading using opposite Koza Anadolu and Akfen Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Akfen 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 Akfen Gayrimenkul will offset losses from the drop in Akfen Gayrimenkul's long position.| Koza Anadolu vs. Koza Altin Isletmeleri | Koza Anadolu vs. Ipek Dogal Enerji | Koza Anadolu vs. Petkim Petrokimya Holding | Koza Anadolu vs. Kardemir Karabuk Demir |
| Akfen Gayrimenkul vs. E Data Teknoloji Pazarlama | Akfen Gayrimenkul vs. Koza Anadolu Metal | Akfen Gayrimenkul vs. Akcansa Cimento Sanayi | Akfen Gayrimenkul vs. Politeknik Metal Sanayi |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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