Correlation Between Koza Anadolu and Katmerciler Arac
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Katmerciler Arac 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 Katmerciler Arac 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 Katmerciler Arac Ustu, you can compare the effects of market volatilities on Koza Anadolu and Katmerciler Arac 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 Katmerciler Arac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Katmerciler Arac.
Diversification Opportunities for Koza Anadolu and Katmerciler Arac
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Koza and Katmerciler is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Katmerciler Arac Ustu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Katmerciler Arac Ustu 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 Katmerciler Arac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Katmerciler Arac Ustu has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Katmerciler Arac go up and down completely randomly.
Pair Corralation between Koza Anadolu and Katmerciler Arac
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.29 times more return on investment than Katmerciler Arac. However, Koza Anadolu is 1.29 times more volatile than Katmerciler Arac Ustu. It trades about 0.24 of its potential returns per unit of risk. Katmerciler Arac Ustu is currently generating about -0.08 per unit of risk. If you would invest 6,045 in Koza Anadolu Metal on September 2, 2024 and sell it today you would earn a total of 1,000.00 from holding Koza Anadolu Metal or generate 16.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Katmerciler Arac Ustu
Performance |
| Timeline |
| Koza Anadolu Metal |
| Katmerciler Arac Ustu |
Koza Anadolu and Katmerciler Arac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Katmerciler Arac
The main advantage of trading using opposite Koza Anadolu and Katmerciler Arac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Katmerciler Arac 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 Katmerciler Arac will offset losses from the drop in Katmerciler Arac'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 |
| Katmerciler Arac vs. Koza Anadolu Metal | Katmerciler Arac vs. Gentas Genel Metal | Katmerciler Arac vs. Cuhadaroglu Metal Sanayi | Katmerciler Arac vs. Bms Birlesik 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stocks Directory Find actively traded stocks across global markets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |