Correlation Between Koza Anadolu and Escort Teknoloji
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Escort Teknoloji 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 Escort Teknoloji 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 Escort Teknoloji Yatirim, you can compare the effects of market volatilities on Koza Anadolu and Escort Teknoloji 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 Escort Teknoloji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Escort Teknoloji.
Diversification Opportunities for Koza Anadolu and Escort Teknoloji
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Koza and Escort is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Escort Teknoloji Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escort Teknoloji Yatirim 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 Escort Teknoloji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escort Teknoloji Yatirim has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Escort Teknoloji go up and down completely randomly.
Pair Corralation between Koza Anadolu and Escort Teknoloji
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 1.56 times less return on investment than Escort Teknoloji. But when comparing it to its historical volatility, Koza Anadolu Metal is 1.13 times less risky than Escort Teknoloji. It trades about 0.03 of its potential returns per unit of risk. Escort Teknoloji Yatirim is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3,566 in Escort Teknoloji Yatirim on September 2, 2024 and sell it today you would earn a total of 1,814 from holding Escort Teknoloji Yatirim or generate 50.87% 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. Escort Teknoloji Yatirim
Performance |
| Timeline |
| Koza Anadolu Metal |
| Escort Teknoloji Yatirim |
Koza Anadolu and Escort Teknoloji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Escort Teknoloji
The main advantage of trading using opposite Koza Anadolu and Escort Teknoloji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Escort Teknoloji 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 Escort Teknoloji will offset losses from the drop in Escort Teknoloji's long position.| Koza Anadolu vs. Trend Gayrimenkul Yatirim | Koza Anadolu vs. Trabzon Liman Isletmeciligi | Koza Anadolu vs. Halk Gayrimenkul Yatirim | Koza Anadolu vs. Inveo Yatirim Holding |
| Escort Teknoloji vs. BIM Birlesik Magazalar | Escort Teknoloji vs. Ford Otomotiv Sanayi | Escort Teknoloji vs. Tofas Turk Otomobil | Escort Teknoloji vs. Arcelik AS |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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