Correlation Between Koza Anadolu and Dagi Giyim
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Dagi Giyim 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 Giyim 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 Giyim Sanayi, you can compare the effects of market volatilities on Koza Anadolu and Dagi Giyim 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 Giyim. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Dagi Giyim.
Diversification Opportunities for Koza Anadolu and Dagi Giyim
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koza and Dagi is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Dagi Giyim Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dagi Giyim Sanayi 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 Giyim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dagi Giyim Sanayi has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Dagi Giyim go up and down completely randomly.
Pair Corralation between Koza Anadolu and Dagi Giyim
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.4 times more return on investment than Dagi Giyim. However, Koza Anadolu is 1.4 times more volatile than Dagi Giyim Sanayi. It trades about 0.2 of its potential returns per unit of risk. Dagi Giyim Sanayi is currently generating about 0.24 per unit of risk. If you would invest 6,285 in Koza Anadolu Metal on September 12, 2024 and sell it today you would earn a total of 760.00 from holding Koza Anadolu Metal or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Dagi Giyim Sanayi
Performance |
| Timeline |
| Koza Anadolu Metal |
| Dagi Giyim Sanayi |
Koza Anadolu and Dagi Giyim Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Dagi Giyim
The main advantage of trading using opposite Koza Anadolu and Dagi Giyim positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Dagi Giyim 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 Giyim will offset losses from the drop in Dagi Giyim'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 Giyim vs. QNB Finans Finansal | Dagi Giyim vs. Pamel Yenilenebilir Elektrik | Dagi Giyim vs. IZDEMIR Enerji Elektrik | Dagi Giyim vs. Logo Yazilim 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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