Correlation Between Koza Anadolu and Dofer Yapi
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Dofer Yapi 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 Dofer Yapi 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 Dofer Yapi Malzemeleri, you can compare the effects of market volatilities on Koza Anadolu and Dofer Yapi 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 Dofer Yapi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Dofer Yapi.
Diversification Opportunities for Koza Anadolu and Dofer Yapi
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koza and Dofer is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Dofer Yapi Malzemeleri in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dofer Yapi Malzemeleri 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 Dofer Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dofer Yapi Malzemeleri has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Dofer Yapi go up and down completely randomly.
Pair Corralation between Koza Anadolu and Dofer Yapi
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.18 times more return on investment than Dofer Yapi. However, Koza Anadolu is 1.18 times more volatile than Dofer Yapi Malzemeleri. It trades about 0.2 of its potential returns per unit of risk. Dofer Yapi Malzemeleri is currently generating about -0.13 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 | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Dofer Yapi Malzemeleri
Performance |
| Timeline |
| Koza Anadolu Metal |
| Dofer Yapi Malzemeleri |
Koza Anadolu and Dofer Yapi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Dofer Yapi
The main advantage of trading using opposite Koza Anadolu and Dofer Yapi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Dofer Yapi 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 Dofer Yapi will offset losses from the drop in Dofer Yapi'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 |
| Dofer Yapi vs. Cuhadaroglu Metal Sanayi | Dofer Yapi vs. CEO Event Medya | Dofer Yapi vs. Galatasaray Sportif Sinai | Dofer Yapi 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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