Correlation Between Koza Anadolu and Duran Dogan
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Duran Dogan 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 Duran Dogan 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 Duran Dogan Basim ve, you can compare the effects of market volatilities on Koza Anadolu and Duran Dogan 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 Duran Dogan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Duran Dogan.
Diversification Opportunities for Koza Anadolu and Duran Dogan
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Koza and Duran is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Duran Dogan Basim ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duran Dogan Basim 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 Duran Dogan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duran Dogan Basim has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Duran Dogan go up and down completely randomly.
Pair Corralation between Koza Anadolu and Duran Dogan
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 1.52 times less return on investment than Duran Dogan. But when comparing it to its historical volatility, Koza Anadolu Metal is 1.67 times less risky than Duran Dogan. It trades about 0.1 of its potential returns per unit of risk. Duran Dogan Basim ve is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 1,445 in Duran Dogan Basim ve on September 3, 2024 and sell it today you would earn a total of 815.00 from holding Duran Dogan Basim ve or generate 56.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Duran Dogan Basim ve
Performance |
| Timeline |
| Koza Anadolu Metal |
| Duran Dogan Basim |
Koza Anadolu and Duran Dogan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Duran Dogan
The main advantage of trading using opposite Koza Anadolu and Duran Dogan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Duran Dogan 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 Duran Dogan will offset losses from the drop in Duran Dogan's long position.| Koza Anadolu vs. Qnb Finansbank AS | Koza Anadolu vs. Turkiye Kalkinma Bankasi | Koza Anadolu vs. Kocaer Celik Sanayi | Koza Anadolu vs. Cimentas Izmir Cimento |
| Duran Dogan vs. Silverline Endustri ve | Duran Dogan vs. Koza Anadolu Metal | Duran Dogan vs. Akcansa Cimento Sanayi | Duran Dogan 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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