Correlation Between Koza Anadolu and Margun Enerji
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Margun Enerji 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 Margun Enerji 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 Margun Enerji Uretim, you can compare the effects of market volatilities on Koza Anadolu and Margun Enerji 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 Margun Enerji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Margun Enerji.
Diversification Opportunities for Koza Anadolu and Margun Enerji
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Koza and Margun is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Margun Enerji Uretim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Margun Enerji Uretim 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 Margun Enerji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Margun Enerji Uretim has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Margun Enerji go up and down completely randomly.
Pair Corralation between Koza Anadolu and Margun Enerji
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 1.02 times less return on investment than Margun Enerji. But when comparing it to its historical volatility, Koza Anadolu Metal is 1.24 times less risky than Margun Enerji. It trades about 0.05 of its potential returns per unit of risk. Margun Enerji Uretim is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,411 in Margun Enerji Uretim on August 31, 2024 and sell it today you would earn a total of 494.00 from holding Margun Enerji Uretim or generate 35.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Margun Enerji Uretim
Performance |
| Timeline |
| Koza Anadolu Metal |
| Margun Enerji Uretim |
Koza Anadolu and Margun Enerji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Margun Enerji
The main advantage of trading using opposite Koza Anadolu and Margun Enerji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Margun Enerji 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 Margun Enerji will offset losses from the drop in Margun Enerji'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 |
| Margun Enerji vs. Galatasaray Sportif Sinai | Margun Enerji vs. Bms Birlesik Metal | Margun Enerji vs. MEGA METAL | Margun Enerji vs. Politeknik Metal 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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