Correlation Between Kardemir Karabuk and Alkim Alkali
Can any of the company-specific risk be diversified away by investing in both Kardemir Karabuk and Alkim Alkali 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 Kardemir Karabuk and Alkim Alkali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kardemir Karabuk Demir and Alkim Alkali Kimya, you can compare the effects of market volatilities on Kardemir Karabuk and Alkim Alkali 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 Kardemir Karabuk with a short position of Alkim Alkali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kardemir Karabuk and Alkim Alkali.
Diversification Opportunities for Kardemir Karabuk and Alkim Alkali
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Kardemir and Alkim is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Kardemir Karabuk Demir and Alkim Alkali Kimya in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alkim Alkali Kimya and Kardemir Karabuk 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 Kardemir Karabuk Demir are associated (or correlated) with Alkim Alkali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alkim Alkali Kimya has no effect on the direction of Kardemir Karabuk i.e., Kardemir Karabuk and Alkim Alkali go up and down completely randomly.
Pair Corralation between Kardemir Karabuk and Alkim Alkali
Assuming the 90 days trading horizon Kardemir Karabuk Demir is expected to generate 1.06 times more return on investment than Alkim Alkali. However, Kardemir Karabuk is 1.06 times more volatile than Alkim Alkali Kimya. It trades about -0.04 of its potential returns per unit of risk. Alkim Alkali Kimya is currently generating about -0.39 per unit of risk. If you would invest 2,780 in Kardemir Karabuk Demir on November 3, 2024 and sell it today you would lose (50.00) from holding Kardemir Karabuk Demir or give up 1.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kardemir Karabuk Demir vs. Alkim Alkali Kimya
Performance |
| Timeline |
| Kardemir Karabuk Demir |
| Alkim Alkali Kimya |
Kardemir Karabuk and Alkim Alkali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kardemir Karabuk and Alkim Alkali
The main advantage of trading using opposite Kardemir Karabuk and Alkim Alkali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kardemir Karabuk position performs unexpectedly, Alkim Alkali 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 Alkim Alkali will offset losses from the drop in Alkim Alkali's long position.| Kardemir Karabuk vs. ICBC Turkey Bank | Kardemir Karabuk vs. Koza Anadolu Metal | Kardemir Karabuk vs. Sekerbank TAS | Kardemir Karabuk vs. Politeknik Metal Sanayi |
| Alkim Alkali vs. Aksa Akrilik Kimya | Alkim Alkali vs. Eregli Demir ve | Alkim Alkali vs. Tofas Turk Otomobil | Alkim Alkali vs. Hektas Ticaret TAS |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |