Correlation Between Koza Anadolu and Ipek Dogal
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Ipek Dogal 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 Ipek Dogal 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 Ipek Dogal Enerji, you can compare the effects of market volatilities on Koza Anadolu and Ipek Dogal 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 Ipek Dogal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Ipek Dogal.
Diversification Opportunities for Koza Anadolu and Ipek Dogal
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Koza and Ipek is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Ipek Dogal Enerji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ipek Dogal Enerji 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 Ipek Dogal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ipek Dogal Enerji has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Ipek Dogal go up and down completely randomly.
Pair Corralation between Koza Anadolu and Ipek Dogal
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 2.37 times less return on investment than Ipek Dogal. But when comparing it to its historical volatility, Koza Anadolu Metal is 1.04 times less risky than Ipek Dogal. It trades about 0.26 of its potential returns per unit of risk. Ipek Dogal Enerji is currently generating about 0.59 of returns per unit of risk over similar time horizon. If you would invest 3,510 in Ipek Dogal Enerji on August 28, 2024 and sell it today you would earn a total of 1,605 from holding Ipek Dogal Enerji or generate 45.73% 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. Ipek Dogal Enerji
Performance |
| Timeline |
| Koza Anadolu Metal |
| Ipek Dogal Enerji |
Koza Anadolu and Ipek Dogal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Ipek Dogal
The main advantage of trading using opposite Koza Anadolu and Ipek Dogal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Ipek Dogal 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 Ipek Dogal will offset losses from the drop in Ipek Dogal's long position.| Koza Anadolu vs. Qnb Finansbank AS | Koza Anadolu vs. QNB Finans Finansal | Koza Anadolu vs. Turkiye Kalkinma Bankasi | Koza Anadolu vs. Kocaer Celik Sanayi |
| Ipek Dogal vs. Koza Anadolu Metal | Ipek Dogal vs. Koza Altin Isletmeleri | Ipek Dogal vs. Vestel Elektronik Sanayi | Ipek Dogal vs. Petkim Petrokimya Holding |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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