Correlation Between Kervan Gda and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Kervan Gda and Koza Anadolu 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 Kervan Gda and Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kervan Gda Sanayi and Koza Anadolu Metal, you can compare the effects of market volatilities on Kervan Gda and Koza Anadolu 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 Kervan Gda with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kervan Gda and Koza Anadolu.
Diversification Opportunities for Kervan Gda and Koza Anadolu
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Kervan and Koza is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Kervan Gda Sanayi and Koza Anadolu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koza Anadolu Metal and Kervan Gda 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 Kervan Gda Sanayi are associated (or correlated) with Koza Anadolu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koza Anadolu Metal has no effect on the direction of Kervan Gda i.e., Kervan Gda and Koza Anadolu go up and down completely randomly.
Pair Corralation between Kervan Gda and Koza Anadolu
Assuming the 90 days trading horizon Kervan Gda Sanayi is expected to under-perform the Koza Anadolu. But the stock apears to be less risky and, when comparing its historical volatility, Kervan Gda Sanayi is 1.64 times less risky than Koza Anadolu. The stock trades about -0.02 of its potential returns per unit of risk. The Koza Anadolu Metal is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 6,100 in Koza Anadolu Metal on October 26, 2024 and sell it today you would earn a total of 1,335 from holding Koza Anadolu Metal or generate 21.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kervan Gda Sanayi vs. Koza Anadolu Metal
Performance |
| Timeline |
| Kervan Gda Sanayi |
| Koza Anadolu Metal |
Kervan Gda and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kervan Gda and Koza Anadolu
The main advantage of trading using opposite Kervan Gda and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kervan Gda position performs unexpectedly, Koza Anadolu 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 Koza Anadolu will offset losses from the drop in Koza Anadolu's long position.| Kervan Gda vs. Silverline Endustri ve | Kervan Gda vs. Koza Anadolu Metal | Kervan Gda vs. Akcansa Cimento Sanayi | Kervan Gda vs. Politeknik Metal Sanayi |
| Koza Anadolu vs. Koza Altin Isletmeleri | Koza Anadolu vs. Ipek Dogal Enerji | Koza Anadolu vs. Petkim Petrokimya Holding | Koza Anadolu vs. Kardemir Karabuk Demir |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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