Correlation Between Turkiye Sise and Koza Anadolu
Can any of the company-specific risk be diversified away by investing in both Turkiye Sise 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 Turkiye Sise and Koza Anadolu 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 Koza Anadolu Metal, you can compare the effects of market volatilities on Turkiye Sise 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 Turkiye Sise with a short position of Koza Anadolu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turkiye Sise and Koza Anadolu.
Diversification Opportunities for Turkiye Sise and Koza Anadolu
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Turkiye and Koza is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Turkiye Sise ve 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 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 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 Turkiye Sise i.e., Turkiye Sise and Koza Anadolu go up and down completely randomly.
Pair Corralation between Turkiye Sise and Koza Anadolu
Assuming the 90 days trading horizon Turkiye Sise ve is expected to under-perform the Koza Anadolu. But the stock apears to be less risky and, when comparing its historical volatility, Turkiye Sise ve is 1.66 times less risky than Koza Anadolu. The stock trades about -0.1 of its potential returns per unit of risk. The Koza Anadolu Metal is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 5,040 in Koza Anadolu Metal on August 28, 2024 and sell it today you would earn a total of 2,130 from holding Koza Anadolu Metal or generate 42.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turkiye Sise ve vs. Koza Anadolu Metal
Performance |
| Timeline |
| Turkiye Sise ve |
| Koza Anadolu Metal |
Turkiye Sise and Koza Anadolu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turkiye Sise and Koza Anadolu
The main advantage of trading using opposite Turkiye Sise and Koza Anadolu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turkiye Sise 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.| Turkiye Sise vs. Eregli Demir ve | Turkiye Sise vs. Turkiye Petrol Rafinerileri | Turkiye Sise vs. Turkish Airlines | Turkiye Sise vs. Ford Otomotiv Sanayi |
| Koza Anadolu vs. Qnb Finansbank AS | Koza Anadolu vs. QNB Finans Finansal | Koza Anadolu vs. Turkiye Kalkinma Bankasi | Koza Anadolu vs. Kocaer Celik 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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