Correlation Between Koza Anadolu and Temapol Polimer
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Temapol Polimer 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 Temapol Polimer 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 Temapol Polimer Plastik, you can compare the effects of market volatilities on Koza Anadolu and Temapol Polimer 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 Temapol Polimer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Temapol Polimer.
Diversification Opportunities for Koza Anadolu and Temapol Polimer
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koza and Temapol is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Temapol Polimer Plastik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Temapol Polimer Plastik 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 Temapol Polimer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Temapol Polimer Plastik has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Temapol Polimer go up and down completely randomly.
Pair Corralation between Koza Anadolu and Temapol Polimer
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 1.5 times more return on investment than Temapol Polimer. However, Koza Anadolu is 1.5 times more volatile than Temapol Polimer Plastik. It trades about 0.15 of its potential returns per unit of risk. Temapol Polimer Plastik is currently generating about 0.16 per unit of risk. If you would invest 6,350 in Koza Anadolu Metal on September 13, 2024 and sell it today you would earn a total of 610.00 from holding Koza Anadolu Metal or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Temapol Polimer Plastik
Performance |
| Timeline |
| Koza Anadolu Metal |
| Temapol Polimer Plastik |
Koza Anadolu and Temapol Polimer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Temapol Polimer
The main advantage of trading using opposite Koza Anadolu and Temapol Polimer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Temapol Polimer 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 Temapol Polimer will offset losses from the drop in Temapol Polimer'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 |
| Temapol Polimer vs. Sekerbank TAS | Temapol Polimer vs. Trabzonspor Sportif Yatirim | Temapol Polimer vs. Bms Birlesik Metal | Temapol Polimer vs. Datagate Bilgisayar Malzemeleri |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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