Correlation Between Koza Anadolu and Senkron Guvenlik
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Senkron Guvenlik 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 Senkron Guvenlik 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 Senkron Guvenlik ve, you can compare the effects of market volatilities on Koza Anadolu and Senkron Guvenlik 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 Senkron Guvenlik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Senkron Guvenlik.
Diversification Opportunities for Koza Anadolu and Senkron Guvenlik
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Koza and Senkron is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Senkron Guvenlik ve in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senkron Guvenlik 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 Senkron Guvenlik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senkron Guvenlik has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Senkron Guvenlik go up and down completely randomly.
Pair Corralation between Koza Anadolu and Senkron Guvenlik
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.73 times more return on investment than Senkron Guvenlik. However, Koza Anadolu Metal is 1.36 times less risky than Senkron Guvenlik. It trades about 0.1 of its potential returns per unit of risk. Senkron Guvenlik ve is currently generating about 0.03 per unit of risk. If you would invest 4,986 in Koza Anadolu Metal on September 3, 2024 and sell it today you would earn a total of 2,064 from holding Koza Anadolu Metal or generate 41.4% 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. Senkron Guvenlik ve
Performance |
| Timeline |
| Koza Anadolu Metal |
| Senkron Guvenlik |
Koza Anadolu and Senkron Guvenlik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Senkron Guvenlik
The main advantage of trading using opposite Koza Anadolu and Senkron Guvenlik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Senkron Guvenlik 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 Senkron Guvenlik will offset losses from the drop in Senkron Guvenlik's long position.| Koza Anadolu vs. Qnb Finansbank AS | Koza Anadolu vs. Turkiye Kalkinma Bankasi | Koza Anadolu vs. Kocaer Celik Sanayi | Koza Anadolu vs. Cimentas Izmir Cimento |
| Senkron Guvenlik vs. Turkiye Petrol Rafinerileri | Senkron Guvenlik vs. Koc Holding AS | Senkron Guvenlik vs. Arcelik AS | Senkron Guvenlik vs. Turkiye Garanti Bankasi |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |