Correlation Between Pergamon Status and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Pergamon Status 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 Pergamon Status and Koza Anadolu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pergamon Status Dis and Koza Anadolu Metal, you can compare the effects of market volatilities on Pergamon Status 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 Pergamon Status with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pergamon Status and Koza Anadolu.
Diversification Opportunities for Pergamon Status and Koza Anadolu
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pergamon and Koza is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Pergamon Status Dis 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 Pergamon Status 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 Pergamon Status Dis 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 Pergamon Status i.e., Pergamon Status and Koza Anadolu go up and down completely randomly.
Pair Corralation between Pergamon Status and Koza Anadolu
Assuming the 90 days trading horizon Pergamon Status is expected to generate 3.46 times less return on investment than Koza Anadolu. But when comparing it to its historical volatility, Pergamon Status Dis is 1.02 times less risky than Koza Anadolu. It trades about 0.06 of its potential returns per unit of risk. Koza Anadolu Metal is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 6,285 in Koza Anadolu Metal on September 12, 2024 and sell it today you would earn a total of 760.00 from holding Koza Anadolu Metal or generate 12.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pergamon Status Dis vs. Koza Anadolu Metal
Performance |
| Timeline |
| Pergamon Status Dis |
| Koza Anadolu Metal |
Pergamon Status and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pergamon Status and Koza Anadolu
The main advantage of trading using opposite Pergamon Status and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pergamon Status 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.| Pergamon Status vs. Bms Birlesik Metal | Pergamon Status vs. Akbank TAS | Pergamon Status vs. MEGA METAL | Pergamon Status vs. Qnb Finansbank AS |
| 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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