Correlation Between Koza Altin and Petkim Petrokimya
Can any of the company-specific risk be diversified away by investing in both Koza Altin and Petkim Petrokimya 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 Altin and Petkim Petrokimya into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Koza Altin Isletmeleri and Petkim Petrokimya Holding, you can compare the effects of market volatilities on Koza Altin and Petkim Petrokimya 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 Altin with a short position of Petkim Petrokimya. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Altin and Petkim Petrokimya.
Diversification Opportunities for Koza Altin and Petkim Petrokimya
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Koza and Petkim is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Koza Altin Isletmeleri and Petkim Petrokimya Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Petkim Petrokimya Holding and Koza Altin 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 Altin Isletmeleri are associated (or correlated) with Petkim Petrokimya. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Petkim Petrokimya Holding has no effect on the direction of Koza Altin i.e., Koza Altin and Petkim Petrokimya go up and down completely randomly.
Pair Corralation between Koza Altin and Petkim Petrokimya
Assuming the 90 days trading horizon Koza Altin Isletmeleri is expected to generate 1.18 times more return on investment than Petkim Petrokimya. However, Koza Altin is 1.18 times more volatile than Petkim Petrokimya Holding. It trades about 0.25 of its potential returns per unit of risk. Petkim Petrokimya Holding is currently generating about -0.08 per unit of risk. If you would invest 2,190 in Koza Altin Isletmeleri on October 23, 2024 and sell it today you would earn a total of 230.00 from holding Koza Altin Isletmeleri or generate 10.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Koza Altin Isletmeleri vs. Petkim Petrokimya Holding
Performance |
| Timeline |
| Koza Altin Isletmeleri |
| Petkim Petrokimya Holding |
Koza Altin and Petkim Petrokimya Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Altin and Petkim Petrokimya
The main advantage of trading using opposite Koza Altin and Petkim Petrokimya positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Altin position performs unexpectedly, Petkim Petrokimya 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 Petkim Petrokimya will offset losses from the drop in Petkim Petrokimya's long position.| Koza Altin vs. Petkim Petrokimya Holding | Koza Altin vs. Kardemir Karabuk Demir | Koza Altin vs. Tekfen Holding AS |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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