Correlation Between Koza Anadolu and Ihlas Yayin

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Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Ihlas Yayin 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 Ihlas Yayin 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 Ihlas Yayin Holding, you can compare the effects of market volatilities on Koza Anadolu and Ihlas Yayin 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 Ihlas Yayin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Ihlas Yayin.

Diversification Opportunities for Koza Anadolu and Ihlas Yayin

0.42
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Koza and Ihlas is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Ihlas Yayin Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ihlas Yayin Holding 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 Ihlas Yayin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ihlas Yayin Holding has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Ihlas Yayin go up and down completely randomly.

Pair Corralation between Koza Anadolu and Ihlas Yayin

Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.65 times more return on investment than Ihlas Yayin. However, Koza Anadolu Metal is 1.53 times less risky than Ihlas Yayin. It trades about 0.13 of its potential returns per unit of risk. Ihlas Yayin Holding is currently generating about -0.24 per unit of risk. If you would invest  6,490  in Koza Anadolu Metal on September 19, 2024 and sell it today you would earn a total of  530.00  from holding Koza Anadolu Metal or generate 8.17% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.65%
ValuesDaily Returns

Koza Anadolu Metal  vs.  Ihlas Yayin Holding

 Performance 
       Timeline  
Koza Anadolu Metal 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Koza Anadolu Metal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Koza Anadolu is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.
Ihlas Yayin Holding 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Ihlas Yayin Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Ihlas Yayin is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Koza Anadolu and Ihlas Yayin Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Koza Anadolu and Ihlas Yayin

The main advantage of trading using opposite Koza Anadolu and Ihlas Yayin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Ihlas Yayin 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 Ihlas Yayin will offset losses from the drop in Ihlas Yayin's long position.
The idea behind Koza Anadolu Metal and Ihlas Yayin Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.

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