Correlation Between Koza Altin and Tekfen Holding
Can any of the company-specific risk be diversified away by investing in both Koza Altin and Tekfen Holding 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 Tekfen Holding 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 Tekfen Holding AS, you can compare the effects of market volatilities on Koza Altin and Tekfen Holding 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 Tekfen Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Koza Altin and Tekfen Holding.
Diversification Opportunities for Koza Altin and Tekfen Holding
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Koza and Tekfen is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Koza Altin Isletmeleri and Tekfen Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tekfen Holding AS 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 Tekfen Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tekfen Holding AS has no effect on the direction of Koza Altin i.e., Koza Altin and Tekfen Holding go up and down completely randomly.
Pair Corralation between Koza Altin and Tekfen Holding
Assuming the 90 days trading horizon Koza Altin is expected to generate 2.5 times less return on investment than Tekfen Holding. In addition to that, Koza Altin is 1.12 times more volatile than Tekfen Holding AS. It trades about 0.03 of its total potential returns per unit of risk. Tekfen Holding AS is currently generating about 0.09 per unit of volatility. If you would invest 7,440 in Tekfen Holding AS on August 28, 2024 and sell it today you would earn a total of 315.00 from holding Tekfen Holding AS or generate 4.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Koza Altin Isletmeleri vs. Tekfen Holding AS
Performance |
| Timeline |
| Koza Altin Isletmeleri |
| Tekfen Holding AS |
Koza Altin and Tekfen Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Koza Altin and Tekfen Holding
The main advantage of trading using opposite Koza Altin and Tekfen Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Koza Altin position performs unexpectedly, Tekfen Holding 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 Tekfen Holding will offset losses from the drop in Tekfen Holding's long position.| Koza Altin vs. Qnb Finansbank AS | Koza Altin vs. QNB Finans Finansal | Koza Altin vs. Turkiye Kalkinma Bankasi | Koza Altin vs. Kocaer Celik Sanayi |
| Tekfen Holding vs. QNB Finans Finansal | Tekfen Holding vs. Pamel Yenilenebilir Elektrik | Tekfen Holding vs. Brisa Bridgestone Sabanci | Tekfen Holding vs. Dogus Gayrimenkul Yatirim |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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