Correlation Between Turkiye Sise and Alarko Holding
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise and Alarko 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 Turkiye Sise and Alarko Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turkiye Sise ve and Alarko Holding AS, you can compare the effects of market volatilities on Turkiye Sise and Alarko 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 Turkiye Sise with a short position of Alarko Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Alarko Holding.
Diversification Opportunities for Turkiye Sise and Alarko Holding
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Turkiye and Alarko is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve and Alarko Holding AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alarko Holding AS and Turkiye Sise 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 Turkiye Sise ve are associated (or correlated) with Alarko Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alarko Holding AS has no effect on the direction of Turkiye Sise i.e., Turkiye Sise and Alarko Holding go up and down completely randomly.
Pair Corralation between Turkiye Sise and Alarko Holding
Assuming the 90 days trading horizon Turkiye Sise ve is expected to under-perform the Alarko Holding. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Sise ve is 1.15 times less risky than Alarko Holding. The stock trades about -0.07 of its potential returns per unit of risk. The Alarko Holding AS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9,440 in Alarko Holding AS on August 30, 2024 and sell it today you would earn a total of 135.00 from holding Alarko Holding AS or generate 1.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Sise ve vs. Alarko Holding AS
Performance |
| Timeline |
| Turkiye Sise ve |
| Alarko Holding AS |
Turkiye Sise and Alarko Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sise and Alarko Holding
The main advantage of trading using opposite Turkiye Sise and Alarko Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise position performs unexpectedly, Alarko 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 Alarko Holding will offset losses from the drop in Alarko Holding's long position.| Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise vs. Ford Otomotiv Sanayi |
| Alarko Holding vs. Turkiye Sise ve | Alarko Holding vs. Eregli Demir ve | Alarko Holding vs. Aksa Enerji Uretim | Alarko Holding vs. Turkiye Petrol Rafinerileri |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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