Correlation Between Silverline Endustri and Koc Holding
Can any of the company-specific risk be diversified away by investing in both Silverline Endustri and Koc Holding 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 Silverline Endustri and Koc Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Silverline Endustri ve and Koc Holding AS, you can compare the effects of market volatilities on Silverline Endustri and Koc Holding 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 Silverline Endustri with a short position of Koc Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Silverline Endustri and Koc Holding.
Diversification Opportunities for Silverline Endustri and Koc Holding
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Silverline and Koc is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Silverline Endustri ve and Koc Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koc Holding AS and Silverline Endustri 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 Silverline Endustri ve are associated (or correlated) with Koc Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koc Holding AS has no effect on the direction of Silverline Endustri i.e., Silverline Endustri and Koc Holding go up and down completely randomly.
Pair Corralation between Silverline Endustri and Koc Holding
Assuming the 90 days trading horizon Silverline Endustri ve is expected to generate 1.57 times more return on investment than Koc Holding. However, Silverline Endustri is 1.57 times more volatile than Koc Holding AS. It trades about 0.01 of its potential returns per unit of risk. Koc Holding AS is currently generating about -0.03 per unit of risk. If you would invest 2,080 in Silverline Endustri ve on September 3, 2024 and sell it today you would lose (40.00) from holding Silverline Endustri ve or give up 1.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Silverline Endustri ve vs. Koc Holding AS
Performance |
| Timeline |
| Silverline Endustri |
| Koc Holding AS |
Silverline Endustri and Koc Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Silverline Endustri and Koc Holding
The main advantage of trading using opposite Silverline Endustri and Koc Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Silverline Endustri position performs unexpectedly, Koc Holding 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 Holding will offset losses from the drop in Koc Holding's long position.| Silverline Endustri vs. Koc Holding AS | Silverline Endustri vs. Eregli Demir ve | Silverline Endustri vs. Turkiye Sise ve | Silverline Endustri vs. Turkcell Iletisim Hizmetleri |
| Koc Holding vs. Haci Omer Sabanci | Koc Holding vs. Turkiye Sise ve | Koc Holding vs. Turkiye Petrol Rafinerileri | Koc Holding vs. Turkiye Garanti Bankasi |
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 Stocks Directory module to find actively traded stocks across global markets.
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