Correlation Between Koza Anadolu and Oylum Sinai
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Oylum Sinai 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 Oylum Sinai 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 Oylum Sinai Yatirimlar, you can compare the effects of market volatilities on Koza Anadolu and Oylum Sinai 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 Oylum Sinai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Oylum Sinai.
Diversification Opportunities for Koza Anadolu and Oylum Sinai
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koza and Oylum is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Oylum Sinai Yatirimlar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oylum Sinai Yatirimlar 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 Oylum Sinai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oylum Sinai Yatirimlar has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Oylum Sinai go up and down completely randomly.
Pair Corralation between Koza Anadolu and Oylum Sinai
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.0 times more return on investment than Oylum Sinai. However, Koza Anadolu Metal is 1.0 times less risky than Oylum Sinai. It trades about -0.06 of its potential returns per unit of risk. Oylum Sinai Yatirimlar is currently generating about -0.07 per unit of risk. If you would invest 7,160 in Koza Anadolu Metal on November 5, 2024 and sell it today you would lose (210.00) from holding Koza Anadolu Metal or give up 2.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Oylum Sinai Yatirimlar
Performance |
| Timeline |
| Koza Anadolu Metal |
| Oylum Sinai Yatirimlar |
Koza Anadolu and Oylum Sinai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Oylum Sinai
The main advantage of trading using opposite Koza Anadolu and Oylum Sinai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Oylum Sinai 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 Oylum Sinai will offset losses from the drop in Oylum Sinai'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 |
| Oylum Sinai vs. Creditwest Faktoring AS | Oylum Sinai vs. Mackolik Internet Hizmetleri | Oylum Sinai vs. Koza Anadolu Metal | Oylum Sinai vs. Borlease Otomotiv AS |
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 Stocks Directory module to find actively traded stocks across global markets.
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