Correlation Between Turk Tuborg and Kocaer Celik
Can any of the company-specific risk be diversified away by investing in both Turk Tuborg and Kocaer Celik 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 Turk Tuborg and Kocaer Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turk Tuborg Bira and Kocaer Celik Sanayi, you can compare the effects of market volatilities on Turk Tuborg and Kocaer Celik 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 Turk Tuborg with a short position of Kocaer Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turk Tuborg and Kocaer Celik.
Diversification Opportunities for Turk Tuborg and Kocaer Celik
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Turk and Kocaer is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Turk Tuborg Bira and Kocaer Celik Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kocaer Celik Sanayi and Turk Tuborg 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 Turk Tuborg Bira are associated (or correlated) with Kocaer Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kocaer Celik Sanayi has no effect on the direction of Turk Tuborg i.e., Turk Tuborg and Kocaer Celik go up and down completely randomly.
Pair Corralation between Turk Tuborg and Kocaer Celik
Assuming the 90 days trading horizon Turk Tuborg is expected to generate 1.62 times less return on investment than Kocaer Celik. In addition to that, Turk Tuborg is 1.2 times more volatile than Kocaer Celik Sanayi. It trades about 0.09 of its total potential returns per unit of risk. Kocaer Celik Sanayi is currently generating about 0.18 per unit of volatility. If you would invest 3,710 in Kocaer Celik Sanayi on August 27, 2024 and sell it today you would earn a total of 298.00 from holding Kocaer Celik Sanayi or generate 8.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turk Tuborg Bira vs. Kocaer Celik Sanayi
Performance |
| Timeline |
| Turk Tuborg Bira |
| Kocaer Celik Sanayi |
Turk Tuborg and Kocaer Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turk Tuborg and Kocaer Celik
The main advantage of trading using opposite Turk Tuborg and Kocaer Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turk Tuborg position performs unexpectedly, Kocaer Celik 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 Kocaer Celik will offset losses from the drop in Kocaer Celik's long position.| Turk Tuborg vs. Is Yatirim Ortakligi | Turk Tuborg vs. Creditwest Faktoring AS | Turk Tuborg vs. Turk Telekomunikasyon AS | Turk Tuborg vs. Aygaz AS |
| Kocaer Celik vs. Eregli Demir ve | Kocaer Celik vs. Iskenderun Demir ve | Kocaer Celik vs. Borusan Yatirim ve | Kocaer Celik 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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