Correlation Between Koza Anadolu and Yesil Yapi
Can any of the company-specific risk be diversified away by investing in both Koza Anadolu and Yesil Yapi 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 Yesil Yapi 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 Yesil Yapi Endustrisi, you can compare the effects of market volatilities on Koza Anadolu and Yesil Yapi 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 Yesil Yapi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Anadolu and Yesil Yapi.
Diversification Opportunities for Koza Anadolu and Yesil Yapi
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Koza and Yesil is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Koza Anadolu Metal and Yesil Yapi Endustrisi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yesil Yapi Endustrisi 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 Yesil Yapi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yesil Yapi Endustrisi has no effect on the direction of Koza Anadolu i.e., Koza Anadolu and Yesil Yapi go up and down completely randomly.
Pair Corralation between Koza Anadolu and Yesil Yapi
Assuming the 90 days trading horizon Koza Anadolu Metal is expected to generate 0.91 times more return on investment than Yesil Yapi. However, Koza Anadolu Metal is 1.1 times less risky than Yesil Yapi. It trades about 0.1 of its potential returns per unit of risk. Yesil Yapi Endustrisi is currently generating about -0.01 per unit of risk. If you would invest 5,030 in Koza Anadolu Metal on September 1, 2024 and sell it today you would earn a total of 2,015 from holding Koza Anadolu Metal or generate 40.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Koza Anadolu Metal vs. Yesil Yapi Endustrisi
Performance |
| Timeline |
| Koza Anadolu Metal |
| Yesil Yapi Endustrisi |
Koza Anadolu and Yesil Yapi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Anadolu and Yesil Yapi
The main advantage of trading using opposite Koza Anadolu and Yesil Yapi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Anadolu position performs unexpectedly, Yesil Yapi 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 Yesil Yapi will offset losses from the drop in Yesil Yapi'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 |
| Yesil Yapi vs. Cuhadaroglu Metal Sanayi | Yesil Yapi vs. Trabzonspor Sportif Yatirim | Yesil Yapi vs. Akcansa Cimento Sanayi | Yesil Yapi vs. E Data Teknoloji Pazarlama |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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