Correlation Between Koza Anadolu and Petrokent Turizm
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Petrokent Turizm 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 Petrokent Turizm 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 Petrokent Turizm AS, you can compare the effects of market volatilities on Koza Anadolu and Petrokent Turizm 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 Petrokent Turizm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Petrokent Turizm.
Diversification Opportunities for Koza Anadolu and Petrokent Turizm
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koza and Petrokent is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Petrokent Turizm AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petrokent Turizm 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 Petrokent Turizm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petrokent Turizm has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Petrokent Turizm go up and down completely randomly.
Pair Corralation between Koza Anadolu and Petrokent Turizm
Assuming the 90 days trading horizon Koza Anadolu is expected to generate 1.47 times less return on investment than Petrokent Turizm. But when comparing it to its historical volatility, Koza Anadolu Metal is 1.23 times less risky than Petrokent Turizm. It trades about 0.03 of its potential returns per unit of risk. Petrokent Turizm AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 18,570 in Petrokent Turizm AS on September 14, 2024 and sell it today you would earn a total of 6,130 from holding Petrokent Turizm AS or generate 33.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Petrokent Turizm AS
Performance |
| Timeline |
| Koza Anadolu Metal |
| Petrokent Turizm |
Koza Anadolu and Petrokent Turizm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Petrokent Turizm
The main advantage of trading using opposite Koza Anadolu and Petrokent Turizm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Petrokent Turizm 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 Petrokent Turizm will offset losses from the drop in Petrokent Turizm'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 |
| Petrokent Turizm vs. Bms Birlesik Metal | Petrokent Turizm vs. Koza Anadolu Metal | Petrokent Turizm vs. CEO Event Medya | Petrokent Turizm vs. Creditwest Faktoring 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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