Correlation Between Petrokent Turizm and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Petrokent Turizm 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 Petrokent Turizm and Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Petrokent Turizm AS and Koza Anadolu Metal, you can compare the effects of market volatilities on Petrokent Turizm 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 Petrokent Turizm with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Petrokent Turizm and Koza Anadolu.
Diversification Opportunities for Petrokent Turizm and Koza Anadolu
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Petrokent and Koza is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Petrokent Turizm AS 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 Petrokent Turizm 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 Petrokent Turizm AS 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 Petrokent Turizm i.e., Petrokent Turizm and Koza Anadolu go up and down completely randomly.
Pair Corralation between Petrokent Turizm and Koza Anadolu
Assuming the 90 days trading horizon Petrokent Turizm is expected to generate 1.29 times less return on investment than Koza Anadolu. In addition to that, Petrokent Turizm is 1.06 times more volatile than Koza Anadolu Metal. It trades about 0.09 of its total potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.12 per unit of volatility. If you would invest 6,790 in Koza Anadolu Metal on October 20, 2024 and sell it today you would earn a total of 385.00 from holding Koza Anadolu Metal or generate 5.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Petrokent Turizm AS vs. Koza Anadolu Metal
Performance |
| Timeline |
| Petrokent Turizm |
| Koza Anadolu Metal |
Petrokent Turizm and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Petrokent Turizm and Koza Anadolu
The main advantage of trading using opposite Petrokent Turizm and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Petrokent Turizm 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.| Petrokent Turizm vs. Politeknik Metal Sanayi | Petrokent Turizm vs. KOC METALURJI | Petrokent Turizm vs. MEGA METAL | Petrokent Turizm vs. Koza Anadolu Metal |
| 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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