Correlation Between SASA Polyester and KOC METALURJI
Can any of the company-specific risk be diversified away by investing in both SASA Polyester and KOC METALURJI 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 SASA Polyester and KOC METALURJI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SASA Polyester Sanayi and KOC METALURJI, you can compare the effects of market volatilities on SASA Polyester and KOC METALURJI 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 SASA Polyester with a short position of KOC METALURJI. Check out your portfolio center. Please also check ongoing floating volatility patterns of SASA Polyester and KOC METALURJI.
Diversification Opportunities for SASA Polyester and KOC METALURJI
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SASA and KOC is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding SASA Polyester Sanayi and KOC METALURJI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KOC METALURJI and SASA Polyester 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 SASA Polyester Sanayi are associated (or correlated) with KOC METALURJI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KOC METALURJI has no effect on the direction of SASA Polyester i.e., SASA Polyester and KOC METALURJI go up and down completely randomly.
Pair Corralation between SASA Polyester and KOC METALURJI
Assuming the 90 days trading horizon SASA Polyester Sanayi is expected to under-perform the KOC METALURJI. But the stock apears to be less risky and, when comparing its historical volatility, SASA Polyester Sanayi is 1.41 times less risky than KOC METALURJI. The stock trades about -0.2 of its potential returns per unit of risk. The KOC METALURJI is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,659 in KOC METALURJI on October 18, 2024 and sell it today you would lose (61.00) from holding KOC METALURJI or give up 3.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SASA Polyester Sanayi vs. KOC METALURJI
Performance |
| Timeline |
| SASA Polyester Sanayi |
| KOC METALURJI |
SASA Polyester and KOC METALURJI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SASA Polyester and KOC METALURJI
The main advantage of trading using opposite SASA Polyester and KOC METALURJI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SASA Polyester position performs unexpectedly, KOC METALURJI 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 KOC METALURJI will offset losses from the drop in KOC METALURJI's long position.| SASA Polyester vs. Hektas Ticaret TAS | SASA Polyester vs. Eregli Demir ve | SASA Polyester vs. Turkiye Sise ve | SASA Polyester vs. Turkiye Petrol Rafinerileri |
| KOC METALURJI vs. SASA Polyester Sanayi | KOC METALURJI vs. Turkish Airlines | KOC METALURJI vs. Koc Holding AS | KOC METALURJI vs. Ford Otomotiv 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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