Correlation Between Koza Anadolu and Ozak Gayrimenkul
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Ozak Gayrimenkul 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 Ozak Gayrimenkul 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 Ozak Gayrimenkul Yatirim, you can compare the effects of market volatilities on Koza Anadolu and Ozak Gayrimenkul 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 Ozak Gayrimenkul. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Ozak Gayrimenkul.
Diversification Opportunities for Koza Anadolu and Ozak Gayrimenkul
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Koza and Ozak is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Ozak Gayrimenkul Yatirim in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ozak Gayrimenkul Yatirim 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 Ozak Gayrimenkul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ozak Gayrimenkul Yatirim has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Ozak Gayrimenkul go up and down completely randomly.
Pair Corralation between Koza Anadolu and Ozak Gayrimenkul
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.05 times more return on investment than Ozak Gayrimenkul. However, Koza Anadolu is 1.05 times more volatile than Ozak Gayrimenkul Yatirim. It trades about 0.04 of its potential returns per unit of risk. Ozak Gayrimenkul Yatirim is currently generating about 0.04 per unit of risk. If you would invest 5,540 in Koza Anadolu Metal on September 12, 2024 and sell it today you would earn a total of 1,505 from holding Koza Anadolu Metal or generate 27.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.7% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Ozak Gayrimenkul Yatirim
Performance |
| Timeline |
| Koza Anadolu Metal |
| Ozak Gayrimenkul Yatirim |
Koza Anadolu and Ozak Gayrimenkul Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Ozak Gayrimenkul
The main advantage of trading using opposite Koza Anadolu and Ozak Gayrimenkul positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Ozak Gayrimenkul 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 Ozak Gayrimenkul will offset losses from the drop in Ozak Gayrimenkul'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 |
| Ozak Gayrimenkul vs. MEGA METAL | Ozak Gayrimenkul vs. Koza Anadolu Metal | Ozak Gayrimenkul vs. Bms Birlesik Metal | Ozak Gayrimenkul vs. Akbank TAS |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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