Correlation Between Koza Anadolu and Eminis Ambalaj
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Eminis Ambalaj 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 Eminis Ambalaj 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 Eminis Ambalaj Sanayi, you can compare the effects of market volatilities on Koza Anadolu and Eminis Ambalaj 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 Eminis Ambalaj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Eminis Ambalaj.
Diversification Opportunities for Koza Anadolu and Eminis Ambalaj
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koza and Eminis is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Eminis Ambalaj Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eminis Ambalaj 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 Eminis Ambalaj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eminis Ambalaj Sanayi has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Eminis Ambalaj go up and down completely randomly.
Pair Corralation between Koza Anadolu and Eminis Ambalaj
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.68 times more return on investment than Eminis Ambalaj. However, Koza Anadolu Metal is 1.47 times less risky than Eminis Ambalaj. It trades about 0.18 of its potential returns per unit of risk. Eminis Ambalaj Sanayi is currently generating about -0.05 per unit of risk. If you would invest 6,120 in Koza Anadolu Metal on August 30, 2024 and sell it today you would earn a total of 730.00 from holding Koza Anadolu Metal or generate 11.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Eminis Ambalaj Sanayi
Performance |
| Timeline |
| Koza Anadolu Metal |
| Eminis Ambalaj Sanayi |
Koza Anadolu and Eminis Ambalaj Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Eminis Ambalaj
The main advantage of trading using opposite Koza Anadolu and Eminis Ambalaj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Eminis Ambalaj 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 Eminis Ambalaj will offset losses from the drop in Eminis Ambalaj'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 |
| Eminis Ambalaj vs. Cuhadaroglu Metal Sanayi | Eminis Ambalaj vs. Koza Anadolu Metal | Eminis Ambalaj vs. Mackolik Internet Hizmetleri | Eminis Ambalaj vs. ICBC Turkey Bank |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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