Correlation Between Kardemir Karabuk and Izmir Demir
Can any of the company-specific risk be diversified away by investing in both Kardemir Karabuk and Izmir Demir 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 Izmir Demir 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 Izmir Demir Celik, you can compare the effects of market volatilities on Kardemir Karabuk and Izmir Demir 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 Izmir Demir. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kardemir Karabuk and Izmir Demir.
Diversification Opportunities for Kardemir Karabuk and Izmir Demir
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kardemir and Izmir is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Kardemir Karabuk Demir and Izmir Demir Celik in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Izmir Demir Celik 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 Izmir Demir. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Izmir Demir Celik has no effect on the direction of Kardemir Karabuk i.e., Kardemir Karabuk and Izmir Demir go up and down completely randomly.
Pair Corralation between Kardemir Karabuk and Izmir Demir
Assuming the 90 days trading horizon Kardemir Karabuk Demir is expected to generate 1.03 times more return on investment than Izmir Demir. However, Kardemir Karabuk is 1.03 times more volatile than Izmir Demir Celik. It trades about 0.04 of its potential returns per unit of risk. Izmir Demir Celik is currently generating about 0.01 per unit of risk. If you would invest 1,833 in Kardemir Karabuk Demir on September 12, 2024 and sell it today you would earn a total of 993.00 from holding Kardemir Karabuk Demir or generate 54.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kardemir Karabuk Demir vs. Izmir Demir Celik
Performance |
| Timeline |
| Kardemir Karabuk Demir |
| Izmir Demir Celik |
Kardemir Karabuk and Izmir Demir Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kardemir Karabuk and Izmir Demir
The main advantage of trading using opposite Kardemir Karabuk and Izmir Demir positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kardemir Karabuk position performs unexpectedly, Izmir Demir 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 Izmir Demir will offset losses from the drop in Izmir Demir's long position.| Kardemir Karabuk vs. Ayes Celik Hasir | Kardemir Karabuk vs. Trend Gayrimenkul Yatirim | Kardemir Karabuk vs. Ege Endustri ve | Kardemir Karabuk vs. Alarko Carrier Sanayi |
| Izmir Demir vs. Galatasaray Sportif Sinai | Izmir Demir vs. Silverline Endustri ve | Izmir Demir vs. MEGA METAL | Izmir Demir vs. Bms Birlesik Metal |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |