Correlation Between Koza Anadolu and MEGA METAL
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and MEGA METAL 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 MEGA METAL 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 MEGA METAL, you can compare the effects of market volatilities on Koza Anadolu and MEGA METAL 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 MEGA METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and MEGA METAL.
Diversification Opportunities for Koza Anadolu and MEGA METAL
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Koza and MEGA is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and MEGA METAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEGA METAL 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 MEGA METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEGA METAL has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and MEGA METAL go up and down completely randomly.
Pair Corralation between Koza Anadolu and MEGA METAL
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.7 times more return on investment than MEGA METAL. However, Koza Anadolu Metal is 1.43 times less risky than MEGA METAL. It trades about 0.04 of its potential returns per unit of risk. MEGA METAL is currently generating about 0.02 per unit of risk. If you would invest 5,445 in Koza Anadolu Metal on August 28, 2024 and sell it today you would earn a total of 1,725 from holding Koza Anadolu Metal or generate 31.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 67.05% |
| Values | Daily Returns |
Koza Anadolu Metal vs. MEGA METAL
Performance |
| Timeline |
| Koza Anadolu Metal |
| MEGA METAL |
Koza Anadolu and MEGA METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and MEGA METAL
The main advantage of trading using opposite Koza Anadolu and MEGA METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, MEGA METAL 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 MEGA METAL will offset losses from the drop in MEGA METAL'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 |
| MEGA METAL vs. Turkish Airlines | MEGA METAL vs. Koc Holding AS | MEGA METAL vs. Ford Otomotiv Sanayi | MEGA METAL vs. Turkiye Petrol Rafinerileri |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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