Correlation Between Koza Anadolu and Dagi Yatirim
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Dagi Yatirim 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 Dagi Yatirim 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 Dagi Yatirim Holding, you can compare the effects of market volatilities on Koza Anadolu and Dagi Yatirim 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 Dagi Yatirim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Dagi Yatirim.
Diversification Opportunities for Koza Anadolu and Dagi Yatirim
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koza and Dagi is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Dagi Yatirim Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Yatirim Holding 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 Dagi Yatirim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Yatirim Holding has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Dagi Yatirim go up and down completely randomly.
Pair Corralation between Koza Anadolu and Dagi Yatirim
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.5 times more return on investment than Dagi Yatirim. However, Koza Anadolu is 1.5 times more volatile than Dagi Yatirim Holding. It trades about 0.23 of its potential returns per unit of risk. Dagi Yatirim Holding is currently generating about 0.0 per unit of risk. If you would invest 6,350 in Koza Anadolu Metal on September 13, 2024 and sell it today you would earn a total of 930.00 from holding Koza Anadolu Metal or generate 14.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Dagi Yatirim Holding
Performance |
| Timeline |
| Koza Anadolu Metal |
| Dagi Yatirim Holding |
Koza Anadolu and Dagi Yatirim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Dagi Yatirim
The main advantage of trading using opposite Koza Anadolu and Dagi Yatirim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Dagi Yatirim 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 Dagi Yatirim will offset losses from the drop in Dagi Yatirim'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 |
| Dagi Yatirim vs. Koza Anadolu Metal | Dagi Yatirim vs. Akbank TAS | Dagi Yatirim vs. Bms Birlesik Metal | Dagi Yatirim vs. MEGA 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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