Correlation Between Koza Anadolu and Halk Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Halk Gayrimenkul 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 Halk Gayrimenkul 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 Halk Gayrimenkul Yatirim, you can compare the effects of market volatilities on Koza Anadolu and Halk Gayrimenkul 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 Halk Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Halk Gayrimenkul.
Diversification Opportunities for Koza Anadolu and Halk Gayrimenkul
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Koza and Halk is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Halk Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Halk Gayrimenkul 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 Halk Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Halk Gayrimenkul Yatirim has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Halk Gayrimenkul go up and down completely randomly.
Pair Corralation between Koza Anadolu and Halk Gayrimenkul
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.7 times more return on investment than Halk Gayrimenkul. However, Koza Anadolu Metal is 1.44 times less risky than Halk Gayrimenkul. It trades about 0.03 of its potential returns per unit of risk. Halk Gayrimenkul Yatirim is currently generating about 0.02 per unit of risk. If you would invest 5,705 in Koza Anadolu Metal on September 2, 2024 and sell it today you would earn a total of 1,340 from holding Koza Anadolu Metal or generate 23.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Halk Gayrimenkul Yatirim
Performance |
| Timeline |
| Koza Anadolu Metal |
| Halk Gayrimenkul Yatirim |
Koza Anadolu and Halk Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Halk Gayrimenkul
The main advantage of trading using opposite Koza Anadolu and Halk Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Halk Gayrimenkul 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 Halk Gayrimenkul will offset losses from the drop in Halk Gayrimenkul'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 |
| Halk Gayrimenkul vs. Sekerbank TAS | Halk Gayrimenkul vs. Gentas Genel Metal | Halk Gayrimenkul vs. Koza Anadolu Metal | Halk Gayrimenkul 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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