Correlation Between Otokar Otomotiv and Konya Cimento
Can any of the company-specific risk be diversified away by investing in both Otokar Otomotiv and Konya Cimento 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 Otokar Otomotiv and Konya Cimento into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Otokar Otomotiv ve and Konya Cimento Sanayi, you can compare the effects of market volatilities on Otokar Otomotiv and Konya Cimento 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 Otokar Otomotiv with a short position of Konya Cimento. Check out your portfolio center. Please also check ongoing floating volatility patterns of Otokar Otomotiv and Konya Cimento.
Diversification Opportunities for Otokar Otomotiv and Konya Cimento
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Otokar and Konya is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Otokar Otomotiv ve and Konya Cimento Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konya Cimento Sanayi and Otokar Otomotiv 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 Otokar Otomotiv ve are associated (or correlated) with Konya Cimento. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konya Cimento Sanayi has no effect on the direction of Otokar Otomotiv i.e., Otokar Otomotiv and Konya Cimento go up and down completely randomly.
Pair Corralation between Otokar Otomotiv and Konya Cimento
Assuming the 90 days trading horizon Otokar Otomotiv is expected to generate 1.24 times less return on investment than Konya Cimento. But when comparing it to its historical volatility, Otokar Otomotiv ve is 1.81 times less risky than Konya Cimento. It trades about 0.11 of its potential returns per unit of risk. Konya Cimento Sanayi is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 632,500 in Konya Cimento Sanayi on August 24, 2024 and sell it today you would earn a total of 23,250 from holding Konya Cimento Sanayi or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Otokar Otomotiv ve vs. Konya Cimento Sanayi
Performance |
| Timeline |
| Otokar Otomotiv ve |
| Konya Cimento Sanayi |
Otokar Otomotiv and Konya Cimento Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Otokar Otomotiv and Konya Cimento
The main advantage of trading using opposite Otokar Otomotiv and Konya Cimento positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Otokar Otomotiv position performs unexpectedly, Konya Cimento 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 Konya Cimento will offset losses from the drop in Konya Cimento's long position.| Otokar Otomotiv vs. QNB Finans Finansal | Otokar Otomotiv vs. Pamel Yenilenebilir Elektrik | Otokar Otomotiv vs. Brisa Bridgestone Sabanci | Otokar Otomotiv vs. Dogus Gayrimenkul Yatirim |
| Konya Cimento vs. Ege Endustri ve | Konya Cimento vs. Kartonsan Karton Sanayi | Konya Cimento vs. Nuh Cimento Sanayi | Konya Cimento vs. Afyon Cimento Sanayi |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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