Correlation Between Koza Anadolu and Imas Makina
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Imas Makina 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 Imas Makina 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 Imas Makina Sanayi, you can compare the effects of market volatilities on Koza Anadolu and Imas Makina 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 Imas Makina. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Imas Makina.
Diversification Opportunities for Koza Anadolu and Imas Makina
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Koza and Imas is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Imas Makina Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imas Makina 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 Imas Makina. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imas Makina Sanayi has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Imas Makina go up and down completely randomly.
Pair Corralation between Koza Anadolu and Imas Makina
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.81 times more return on investment than Imas Makina. However, Koza Anadolu Metal is 1.23 times less risky than Imas Makina. It trades about 0.08 of its potential returns per unit of risk. Imas Makina Sanayi is currently generating about 0.0 per unit of risk. If you would invest 4,554 in Koza Anadolu Metal on September 12, 2024 and sell it today you would earn a total of 2,726 from holding Koza Anadolu Metal or generate 59.86% 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. Imas Makina Sanayi
Performance |
| Timeline |
| Koza Anadolu Metal |
| Imas Makina Sanayi |
Koza Anadolu and Imas Makina Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Imas Makina
The main advantage of trading using opposite Koza Anadolu and Imas Makina positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Imas Makina 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 Imas Makina will offset losses from the drop in Imas Makina'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 |
| Imas Makina vs. SASA Polyester Sanayi | Imas Makina vs. Turkish Airlines | Imas Makina vs. Koc Holding AS | Imas Makina vs. Ford Otomotiv 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |