Correlation Between Koza Anadolu and Ekiz Kimya
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Ekiz Kimya 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 Ekiz Kimya 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 Ekiz Kimya Sanayi, you can compare the effects of market volatilities on Koza Anadolu and Ekiz Kimya 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 Ekiz Kimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Ekiz Kimya.
Diversification Opportunities for Koza Anadolu and Ekiz Kimya
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koza and Ekiz is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Ekiz Kimya Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ekiz Kimya 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 Ekiz Kimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ekiz Kimya Sanayi has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Ekiz Kimya go up and down completely randomly.
Pair Corralation between Koza Anadolu and Ekiz Kimya
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.94 times more return on investment than Ekiz Kimya. However, Koza Anadolu Metal is 1.06 times less risky than Ekiz Kimya. It trades about 0.1 of its potential returns per unit of risk. Ekiz Kimya Sanayi is currently generating about -0.02 per unit of risk. If you would invest 4,986 in Koza Anadolu Metal on September 3, 2024 and sell it today you would earn a total of 2,059 from holding Koza Anadolu Metal or generate 41.3% 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. Ekiz Kimya Sanayi
Performance |
| Timeline |
| Koza Anadolu Metal |
| Ekiz Kimya Sanayi |
Koza Anadolu and Ekiz Kimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Ekiz Kimya
The main advantage of trading using opposite Koza Anadolu and Ekiz Kimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Ekiz Kimya 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 Ekiz Kimya will offset losses from the drop in Ekiz Kimya'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 |
| Ekiz Kimya vs. MEGA METAL | Ekiz Kimya vs. Galatasaray Sportif Sinai | Ekiz Kimya vs. Koza Anadolu Metal | Ekiz Kimya vs. Akcansa Cimento 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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