Correlation Between Koza Anadolu and Lider Faktoring
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Lider Faktoring 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 Lider Faktoring 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 Lider Faktoring AS, you can compare the effects of market volatilities on Koza Anadolu and Lider Faktoring 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 Lider Faktoring. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Lider Faktoring.
Diversification Opportunities for Koza Anadolu and Lider Faktoring
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koza and Lider is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Lider Faktoring AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lider Faktoring AS 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 Lider Faktoring. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lider Faktoring AS has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Lider Faktoring go up and down completely randomly.
Pair Corralation between Koza Anadolu and Lider Faktoring
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.94 times more return on investment than Lider Faktoring. However, Koza Anadolu Metal is 1.06 times less risky than Lider Faktoring. It trades about 0.05 of its potential returns per unit of risk. Lider Faktoring AS is currently generating about -0.01 per unit of risk. If you would invest 5,435 in Koza Anadolu Metal on September 1, 2024 and sell it today you would earn a total of 1,610 from holding Koza Anadolu Metal or generate 29.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Lider Faktoring AS
Performance |
| Timeline |
| Koza Anadolu Metal |
| Lider Faktoring AS |
Koza Anadolu and Lider Faktoring Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Lider Faktoring
The main advantage of trading using opposite Koza Anadolu and Lider Faktoring positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Lider Faktoring 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 Lider Faktoring will offset losses from the drop in Lider Faktoring'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 |
| Lider Faktoring vs. Politeknik Metal Sanayi | Lider Faktoring vs. Gentas Genel Metal | Lider Faktoring vs. Galatasaray Sportif Sinai | Lider Faktoring 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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