Correlation Between Sok Marketler and Kardemir Karabuk
Can any of the company-specific risk be diversified away by investing in both Sok Marketler and Kardemir Karabuk 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 Sok Marketler and Kardemir Karabuk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sok Marketler Ticaret and Kardemir Karabuk Demir, you can compare the effects of market volatilities on Sok Marketler and Kardemir Karabuk 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 Sok Marketler with a short position of Kardemir Karabuk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sok Marketler and Kardemir Karabuk.
Diversification Opportunities for Sok Marketler and Kardemir Karabuk
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Sok and Kardemir is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Sok Marketler Ticaret and Kardemir Karabuk Demir in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kardemir Karabuk Demir and Sok Marketler 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 Sok Marketler Ticaret are associated (or correlated) with Kardemir Karabuk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kardemir Karabuk Demir has no effect on the direction of Sok Marketler i.e., Sok Marketler and Kardemir Karabuk go up and down completely randomly.
Pair Corralation between Sok Marketler and Kardemir Karabuk
Assuming the 90 days trading horizon Sok Marketler Ticaret is expected to under-perform the Kardemir Karabuk. But the stock apears to be less risky and, when comparing its historical volatility, Sok Marketler Ticaret is 1.27 times less risky than Kardemir Karabuk. The stock trades about -0.16 of its potential returns per unit of risk. The Kardemir Karabuk Demir is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,854 in Kardemir Karabuk Demir on August 31, 2024 and sell it today you would earn a total of 316.00 from holding Kardemir Karabuk Demir or generate 17.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Sok Marketler Ticaret vs. Kardemir Karabuk Demir
Performance |
| Timeline |
| Sok Marketler Ticaret |
| Kardemir Karabuk Demir |
Sok Marketler and Kardemir Karabuk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sok Marketler and Kardemir Karabuk
The main advantage of trading using opposite Sok Marketler and Kardemir Karabuk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sok Marketler position performs unexpectedly, Kardemir Karabuk 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 Kardemir Karabuk will offset losses from the drop in Kardemir Karabuk's long position.| Sok Marketler vs. BIM Birlesik Magazalar | Sok Marketler vs. Migros Ticaret AS | Sok Marketler vs. Turk Telekomunikasyon AS | Sok Marketler vs. Tofas Turk Otomobil |
| Kardemir Karabuk vs. Eregli Demir ve | Kardemir Karabuk vs. Iskenderun Demir ve | Kardemir Karabuk vs. Borusan Yatirim ve | Kardemir Karabuk 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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